Assume the British pound appreciates against the dollar while the Japanese yen depreciates against the dollar. Which of the following is true?
A) Japanese exporters can increase U.S. sales by shifting operations from their British subsidiaries to Japan.
B) British exporters can increase U.S. sales by shifting operations from their Japanese subsidiaries to Britain.
C) U.S. exporters can increase sales to Japan by shifting operations from Japanese subsidiaries to U.S. subsidiaries.
D) British exporters can increase U.S. sales by shifting operations from their Japanese subsidiaries to Britain AND U.S exporters can increase sales to Japan by shifting operations from Japanese subsidiaries to U.S. subsidiaries.
Correct Answer:
Verified
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