If Mexico has a weak peso relative to the dollar, what is the impact for U.S. companies
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Question:
If Mexico has a weak peso relative to the dollar, what is the impact for U.S. companies importing inputs from Mexico that are priced in pesos?
The U.S. company will demand that the inputs are priced in dollars.
The U.S. company will lose money.
The U.S. company will demand that the inputs be priced in a third currency.
The U.S. company will benefit from its relatively strong dollar.
The U.S. company will experience no effect because of NAFTA.
Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
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