Answer:
E. Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.
Explanation:
Imagine the following scenario:
- USD: united states dollar
- There is no cost in shipping or transport
if the fixed relation is 2 MXN = 1 USD. Say you want to buy a TV that costs 200MXN in Mexico or 100USD in the US. That means that buying a TV costs the same in each country.
Now suppose that the TV price in Mexico, due to inflation, changes to MXN 300.
If you had 300MXN in your wallet, you could:
- use MXN 200 to buy 100USD and use those to buy the TV, and have MXN 100 left, to buy other stuff.
- or
- you could buy the TV in Mexico, you would expend all the money.
That mean that, with the same amount of MXN you can buy more things in the US than in Mexico.
Another way to think about this is.
Say you are a mexican, if there is high inflation, the price of everything will rise, if you considder the exchange rate as another price that means that everything will cost more, except the US Dollar, which will stay in the same price
A: regulate commerce in the South but not the North.
Answer:
a your welcome
Explanation:
i just took a test and got it right
Answer:
Landlocked countries face higher transportation costs and delays in importing and exporting merchandise because they lack access to international waters.
Explanation:
A landlocked country is a country that has no coastline. There are disadvantages to being a landlocked country because you need the permission of other countries to access international waters. Particularly before the invention of railways and air travel being landlocked affected the degree of trade a country carried out and how much the trade cost. The landlocked countries also tend to have low Human Development Indices (HDI) are landlocked including Bolivia, Ethiopia, Niger, and Nepal. Even in modern times being landlocked has disadvantages because of transport costs and goods take a long time to exit ports as you rely on other countries who prioritize their own shipments first.
