You are the CEO of a U.S. firm considering building a factory in Chile. If the dollar appreciates relative to the Chilean peso, then other things the same

A. True
B. False

Respuesta :

Answer:

B. False

Explanation:

If the dollar appreciates relative to the Chilean peso, The Chilean peso will be cheaper and after conversion of dollars U.S firm has more amount to pay for labor and any local payments. Appreciation of Dollar will place U.S firm in favorable position. Appreciation of Chilean peso will make it difficult to pay the local obligations.

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