Suppose Exchange Rates Between the U

question 65

Multiple Choice

Suppose exchange rates between the U.S. dollar and the Mexican peso is 12.90 peso = $1 and the exchange rate between the U.S. dollar and the euro is $1 = 0.90 euros. What is the cross-rate of the Mexican peso to the euro?

• A) 16.03
• B) 17.21
• C) 15.26
• D) 14.33

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Definitions:

Line Extension

The addition of new products to an existing product line of a brand, often in the same product category, to target a wider audience or offer more variety.

Disruptive Innovation

An innovation that significantly alters the way a market or industry functions, often displacing established competitors and reshaping the landscape.

Line Extension

A strategy that involves introducing additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Category Extension

The strategy of using an established brand's name to enter a new product category or market segment, leveraging the brand's existing reputation and customer base.