As per your request, I am re-submitting my question with another question since you had problem solving the first. also, I alrealy paid for this question- therefore, I can not make another payment. Thanks!A US company outsources its production to a plant in Mexico. The workers earn 60 pesos per hour. At that time the exchange rate was R = 15 pesos per dollar. Suppose the exchange rate becomes R = 10. (i) (5 points) What has happened to the value of the dollar?(ii) (10 points) What are the companys hourly labor costs in dollars at both exchange rates?(iii) (5 points) Holding all else constant, what happens to the companys profitability as a result of the exchange rate change?
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