You and a friend, Ying, are considering a summer vacation to one of the two locales: Mexico or Brazil. Mexico's currency unit is the peso and Brazil's currency is the real. You live in the United Sates and Ying lives in China. The cost of the hotel room is denominated in local currency units. You and Ying are trying to find the locale with the lowest hotel expenses. The price of a hotel room is 200 reals per night in Brazil and 800 pesos per night in Mexico. Assume these prices remain unchanged between Year 1 and Year 2.

Foreign currency units per U.S. dollar Country Year 1 Year 2 Brazil (real) 2.379 2.088 China (yuan) 8.277 8.004 Mexico (peso) 9.088 11.393 Venezuela (bolivares) 717.27 2144.60