Refer to Figure 5-9. Suppose the government wants to use a Pigovian tax to bring about the efficient level of production. What should the value of the tax be?

If the dollar appreciates against the Mexican peso

A) U.S. exports to Mexico become less expensive. B) The value of Mexican imports to the United States does not change. C) Mexican imports to the U.S. become more expensive. D) U.S. exports to Mexico become more expensive.

Offshoring became a concern in the 1980s when modern communication and transport technology made it possible for firms to relocate production abroad

Indicate whether the statement is true or false