Consider an industry where many small firms produce a good under perfect competition but with external economies of scale: i. e. the average cost for each firm declines as the scale of the local industry (the aggregate local production) increases (so if the industry is active in a country, it will be concentrated in a specific location). a) What is a real-world example of an industry like this

You are the cfo of a u.s. firm whose wholly owned subsidiary in mexico manufactures component parts for your u.s. assembly operations. the subsidiary has been financed by bank borrowings in the united states. one of your analysts told you that the mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. what actions, if any, should you take