Packer, Inc., a U.S. producer of computer disks, plans to establish a subsidiary in Mexico in order
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Packer, Inc., a U.S. producer of computer disks, plans to establish a subsidiary in Mexico in order to penetrate the Mexican market. Packer’s executives believe that the Mexican peso’s value is relatively strong and will weaken against the dollar over time. If their expectations about the peso’s value are correct, how will this affect the feasibility of the project? Explain.
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