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Willow World is a privately-held manufacturer of home furnishings based out of the United
States. Willow World has one subsidiary in Mexico that exports all of its manufactured products to the United States and does not currently sell any of its manufactured products in Mexico. The Mexican subsidiary incurs all of its expenses in Mexican pesos and all of its revenues are in U.S. dollars. The U.S. operations are conducted only in U.S. dollars. What will be the financial impact on the company’s return on investment (ROI) if the Mexican peso rises against the U.S. dollar assuming no operational changes?