Would each of the following groups be happy or unhappy if the Mexican

Would each of the following groups be happy or unhappy if the Mexican peso appreciates against the U.S. dollar? Answer the question for each of the following:

(a) The U.S. pension funds holding Mexican government bonds
(b) U.S. tourists planning a trip to Mexico
(c) Mexican exporting manufacturers
(d) A Mexican firm trying to buy properties overseas

ANSWER

(a) Happy. The Mexican bonds are a safe haven for U.S. pension holders for now.
(b) Unhappy. It now costs more to travel to Mexico.
(c) Unhappy. The goods and services of Mexican exporters become relatively more expensive than their counterparts in the United States.
(d) Happy. The Mexican peso can buy more American dollar and thus more property than would be the case otherwise.