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What about a dollar depreciation

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Question 1: Suppose ABC Inc., a U.S. auto manufacturer, obtains all of its auto components in the United States and that its costs are denominated in dollars. Assume that the dollar's exchange value appreciates by 50% against the Mexican peso. What impact does the dollar appreciation have on the firm's international competitiveness? What about a dollar depreciation?

Reference no: EM132892924

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