Norman owns a small dairy farm in the United States. He buys cows from local ranchers and produces milk and cheese for local stores. He also sells cheese to a company in Mexico. Norman hears a news report saying that the value of the dollar has risen compared to the Mexican peso. Based on the scenario, Norman's sales to the Mexican company will decrease is likely to happen.
Answer: Norman's sales to the Mexican company will decrease
Step-by-step explanation:
The sales of Norman in the Mexico will decrease, when the dollar value has risen in comparison to the peso, the currency of Mexico. Norman has the small dairy farm in U.S, where the dollar value has risen.
So, the purchase of cows will not be altered by price due to the purchase made from the local ranchers only. The cheese which has to be sold in Mexico will now have a vast difference of money value.
Therefore, the price of cheese in Mexico will increase, and thereby the sale will decrease.