Suppose Mexico Is a Major Export Market for Your U

Multiple Choice

Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso depreciates drastically against the U.S. dollar, as it did in December 1994. This means that

A) your company's products can be priced out of the Mexican market, as the peso price of American imports will rise following the peso's fall.
B) your firm will be able to charge more in dollar terms while keeping peso prices stable.
C) your domestic competitors will enjoy a period of facing little price competition from Mexican imports.
D) both b and c are correct