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What is the impact of a strong dollar relative to the peso for a U.S. consumer...

What is the impact of a strong dollar relative to the peso for a U.S. consumer buying a car produced in Mexico?

Multiple Choice

The car should be less expensive for the U.S. consumer.

The U.S. consumer will probably purchase a domestically produced car instead.

The U.S. consumer will probably have to choose a lesser model to afford the car.

The car will cost more to reflect he higher dollar.

The U.S. consumer will probably choose a used car because the imported car will be too expensive.

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Option 1

The car should be less expensive for the U.S. consumer

The currency is strong so the imports are less expensive than the domestic use or exports so the US consumer will import the car as it is less expensive.

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