Over the past year, the South African Rand has depreciated against the U.S. dollar by 5%. Furthermore, the inflation in the U.S. was at 4% over the year while the inflation in South Africa stood at 7% over the year.

A. The U.S. exporters to South Africa have lost their competitive advantage relative to the local firms by about 3%.

B. The U.S. exporters to South Africa have gained a competitive advantage relative to the local firms by about 2%.

C. The U.S. exporters to South Africa have gained a competitive advantage relative to the local firms by about 3%.

D. The U.S. exporters to South Africa have lost their competitive advantage relative to the local firms by about 2%.