CHAPTER 10 QUIZ 12

CHAPTER 10 QUIZ 12
Economic Exposure. Longhorn Co. produces hospital equipment. Most of its revenues are in the
United States. About half of its expenses require outflows in Philippine pesos (to pay for
Philippine materials). Most of Longhorn- competition is from U.S. firms that have no
international business at all. How will Longhorn Co. be affected if the peso strengthens?

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