"Walloped by the Super Peso"

Business Week, May 14, 2001

Synopsis:
This article explains the effects of the peso that has gained more than 4% against the dollar so far this year on Mexican exporters. Coupled with the reduced demand from the U.S. due to its economic slowdown, the strong peso is crimping export competitiveness. Eventually the peso will weaken with the decline of domestic interest rates and oil prices, but the current super peso is forcing companies to seek new efficiencies through cost reduction, layoffs, and investment in new technology -- unless they want to take the risk of losing U.S. customers to rivals in Central America and Asia.

Full-text Article: http://www.businessweek.com/@@h*y1hGQQeXuPtwQA/premium/content/01_20/b3732170.htm

Text connection: Chapter 10 "The International Monetary System" (pp.317-319).

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