Sycamore (A UK Firm) Has No Subsidiaries and Presently Has

Sycamore (a UK firm) has no subsidiaries and presently has sales to Mexican customers amounting to MXP 98 million, while its peso-denominated expenses amount to MXP 41 million. If it shifts its material orders from its Mexican suppliers to UK suppliers, it could reduce peso-denominated expenses by MXP 12 million and increase pound-denominated expenses by £400,000. This strategy would ____ the Sycamore's exposure to changes in the peso's movements against the pound. Regardless of whether the firm shifts expenses, it is likely to perform better when the peso value is ____ relative to the pound.

A) reduce; high
B) reduce; low
C) increase; low
D) increase; high