Will your cost of production increase

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Reference no: EM131090445

You have a manufacturing plant in Brazil. Your labor cost per hour to manufacture a polo shirt is R$5.99 BRL (Brazilian Real). Will your cost of production increase or decrease if the Brazilian Real appreciates (gains value) compared to the US Dollar? What implications would this change in currency value have on your business and on your consumers back in the U.S.?

Reference no: EM131090445

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