Question
Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso appreciates drastically against the U.S. dollar. This means a) your
Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso appreciates drastically against the U.S. dollar. This means
a) your firm will be able to charge more in dollar terms while keeping peso prices stable and your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports.
b)your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports.
c)your firm will be able to charge more in dollar terms while keeping peso prices stable.
d) your company's products can be priced out of the Mexican market, as the peso price of American imports will rise following the peso's fall.
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