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Mexico and Argentina are trade partners. Which of the following is the most likely impact of the Mexican peso depreciating compared to the Argentinian peso?

Mexico and Argentina are trade partners. Which of the following is the most likely impact of the Mexican peso depreciating compared to the Argentinian peso?

  • A. Argentina will import fewer Mexican goods, hurting Mexican exports
  • B. Argentina will import more Mexican goods, helping Mexican exports
  • C. Mexico will import more Argentinian goods, helping Argentinian exports
  • D. There will be no impact as foreign currency exchange rates dont impact trade

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