Suppose ABC Inc. auto manufacturer, obtains all of its auto components in the United States and that its costs are denominated in dollars.

. Suppose ABC Inc. a U.S. auto manufacturer, obtains all of its auto components in the United States and that its costs are denominated in dollars. Assume the dollar’s exchange value appreciates by 50% against the Mexican peso. What impact does the dollar appreciation have on the firm’s international competitiveness?