When Mexico suffered from capital flight in 1994, what happened to Mexico's net exports?
A)They decreased.
B)They did not change.
C)They increased.
D)They decreased until the peso appreciated; then they increased.

Question

Quizplus · Accepted Answer

Capital flight led to a depreciation of the peso, making Mexican goods cheaper for foreign buyers, thus increasing net exports.

When Mexico Suffered from Capital Flight in 1994, What Happened