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Peso Devaluation Maquiladora Case

91 Words1 Pages
The peso devaluation should lead to a positive effect in Maquiladoras facilities of the company, since this facility mainly sold to customers in the US in USDs respectively. The devaluation of the currency to reduce costs for the subsidiary, in relation to wages, as the peso depreciated against the dollar during this period. The company can buy peso with their profits USD at increasingly attractive exchange rate, and then use it to finance new operations. In so doing, this demonstrates the positive effect of the peso devaluation for Maquiladora Assembly
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