Using the Ganado Germany analysis in Exhibit 12.5 and 12.6 where the euro depreciates, how would prices, costs, and volumes change if Ganado Germany was operating in a nearly purely domestic, mature market, with major domestic competitors?

If all competitors were domestic, Ganado Germany could not change price to try and pass-through exchange rate changes. As a result, all of its operating parameters would remain the same, but its value would fall when valued in U.S. dollars by its U.S. parent company. This is the same as Case 1 in the chapter discussion.