Topic 12: Pizza for Pesos?

The idea of utility is illustrated in the video. The utility of the consumer increase when they are able to pay a pizza with Pesos instead of U.S. dollar. Because the pizza can be paid for pesos, the consumer preference for that pizza patron has increase. They prefer to pay it with Pesos rather than U.S. dollar. I think there will be a big change if the exchange rate between Mexican Pesos and U.S. Dollars raises or fall. If the exchange rate between U.S. dollar and Mexican Pesos fall, then more Hispanic costumers will come here and spent more money. If the exchange rate between U.S. dollar and Mexican Pesos raises, then less consumers will use Pesos to buy pizzas. I think the argument against accepting Pesos is half right and half wrong. Accepting Pesos can increase the consumer spending which help the economy of U.S., but at the same time, Mexican can cross the border with not too much worry, because they can buy food at Pizza Patron and exchange money at Pizza Patron. The exchange of money is also a kind of international trade. Using Pesos to exchange for pizza or U.S. dollar can be regard as international trade.