If the dollar appreciates against the peso it means that U.S. goods become more expensive in Mexico.

Question

Quizplus · Accepted Answer

When the dollar appreciates against the peso, it means that one dollar can buy more pesos. Therefore, if a U.S. product costs $10 and the exchange rate is 1 USD = 20 MXN, the product would cost 200 MXN. However, if the exchange rate changes to 1 USD = 25 MXN, the product would now cost 250 MXN, making it more expensive for Mexican consumers to purchase U.S. goods.

If the Dollar Appreciates Against the Peso It Means That