Question: Assume that this year you decide not to implement the marketing campaign that you considered in the previous chapter. Instead, you will invest some of

Assume that this year you decide not to implement the marketing campaign that you considered in the previous chapter. Instead, you will invest some of this year’s profits in money market investments and then use this money to cover the campaign next year. You can retain the profits earned this year by investing them in a Mexican bank where interest rates are high. Alternatively, you could invest the profits in a dollar-denominated bank account. That is, you could convert your Mexican peso profits to dollars periodically and accumulate the dollars over the year. At the end of the year, you could convert the dollars back to Mexican pesos to pay for the marketing campaign. Explain how you would decide between these two alternatives.

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