Suppose a US firm was producing all its goods in Mexico and selling them in the Euro area, at a time when US dollar was appreciating against both Euro and the Mexican Peso. During this period the net...

Extracted text: Suppose a US firm was producing all its goods in Mexico and selling them in the Euro area, at a time when US dollar was appreciating against both Euro and the Mexican Peso. During this period the net profit of this firm would: Not change much Decrease Increase