Willamette Co. (a U.S. firm) has no subsidiaries and presently has sales to Venezuelan customers amounting to VP115 million, while its peso-denominated expenses amount to VP63 million. If it shifts its material orders from its Venezuelan suppliers to U.S. suppliers, it could reduce peso-denominated expenses by VP25 million and increase dollar-denominated expenses by $1,700,000. This strategy would ____ the Willamette's exposure to changes in the peso's movements against the U.S. dollar. Regardless of whether the firm shifts expenses, it is likely to perform better when the peso is valued ____ relative to the dollar.

reduce; low

increase; high

reduce; high

not affect; high

increase; low