Which tends to decrease the value of the brazilian currency


Problem

Apex, Inc. is a U.S.-based firm that is in the process of buying a medium-sized company in Brazil. Because the Brazilian company sells its services to the global marketplace, revenues are dollar denominated. Its costs, however, are expressed in the Brazilian currency. If Apex anticipates a stronger dollar, which tends to decrease the value of the Brazilian currency, explain why the Brazilian company's purchase price may be relatively insensitive to exchange-rate fluctuations.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Which tends to decrease the value of the brazilian currency
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