Suppose Mexico Is a Major Export Market for Your U

question 15

Multiple Choice

Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso depreciates drastically against the U.S.dollar,as it did in December 1994.This means that

• A)your company's products can be priced out of the Mexican market,as the peso price of American imports will rise following the peso's fall.
• B)your firm will be able to charge more in dollar terms while keeping peso prices stable.
• C)your domestic competitors will enjoy a period of facing little price competition from Mexican imports.
• D)none of the options

---

Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Social Impact Theory

Social impact theory suggests that the amount of influence a person experiences in a group situation depends on the strength, immediacy, and number of other people in the group.

Social Expectation

Norms or standards that a society or community holds, which guide and shape behaviors and attitudes of its members.

Social Loafing

When working in a group, individuals tend to contribute less effort towards attaining a goal compared to when they operate solo.