BNAD 100 Lecture Notes - Lecture 11: Mexican Peso, Amoco, Vertical Integration

• School: University of Arizona
• Department: Business Administration
• Course: BNAD 100
• Professor: Rob Mateucci

Document Summary

A global economy means that the changes in economic conditions/policies can have a significant impact on the economic system across countries and on companies doing business internationally. Changes in foreign currency relative to the us $ can have major impact on trade. Mexican peso was 13. 2 to the us $ in 2012, but now it"s 18. 7. This reduces exports of us goods into mx and increases imports from mx to us. Resulting in trade surplus of billion with the us. What impact does the devaluation of the mexico peso to the us $ have on. Makes exports of us goods into mexico less expensive. Makes exports of us goods into mexico more expensive. Makes imports of mexican goods into the us less expensive. Reported financial performance of us companies doing business abroad is impacted by exchange rates. Mx 1mill pesos divided by 13. 2 = ,750. Mx 1mill pesos divided by 18. 7 = ,500.