Susan runs a factory in Texas that produces heaters. She has done a cost analysis on production and found that it would cost her $5.40 US to
buy the input materials in the United States (per heater): 5.4 pesos (Mexican currency) in Mexico (per heater); and $6.00 Canadian (in Canada),
All transport costs are included in the input cost. Assume the exchange rate for the peso to be $0.80 of $1.00 US, and that $1.00 Canadian is
$0.90 US. What production structure should Susan's factory use?
A
import materials from Canada
B. import materials from Mexico
C
export materials to Mexico
D
use materials from the United States