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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

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  1. 12 June, 14:41
    0
    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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