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  • 14-01-2021
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What is the impact of a strong dollar relative to the peso for a U.S. consumer buying a car produced in Mexico

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Parrain
Parrain Parrain
  • 14-01-2021

Answer: a. The car should be less expensive for the U.S. consumer.

Explanation:

If the dollar is strong relative to the peso, it means that the US dollar can buy more pesos.

If a U.S. consumers should therefore buy a car that was produced in Mexico, the car would be cheaper for them because the car would have originally be priced in pesos and with the U.S. dollar stronger, the American consumer would spend less dollars to match the price in pesos.

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