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O a natural hedge Question 18 1 pts Ford Mexicana, a subsidiary of Ford n Mexico, which imports cars from the parent and distributes them

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O a natural hedge Question 18 1 pts Ford Mexicana, a subsidiary of Ford n Mexico, which imports cars from the parent and distributes them in Mexico. Ford Mexicana wants to maintain the USD price regardless of the change in the exchange rates. Suppose Ford Mexicana faces competition only from Japanese car makers. Japanese car makers want to keep the .IPY price intact. If USD appreciates (against peso), while Japanese Yen (JPY) depreciates (against peso). O Ford Mexicana has to raise peso price, while Japanese car importer can lower peso price Ford Mexicana has to raise peso price while Japanese car importer has to raise peso price, too. Ford Mexicana can lower peso price, increasing sales. 1 pts Question 19

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