Suppose Mexico is a major export market for your U. S.-based company and the Mexican peso appreciates drastically against the U. S. dollar. This means:. a. your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports.
b. your firm will be able to charge more in dollar terms while keeping peso prices stable.
c. your firm will be able to charge more in dollar terms while keeping peso prices stable and your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports.
d. 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.