Jenco Co. imports raw materials from Japan, invoiced in U.S. dollars. The price it pays is not expected to change for the next several years. If the Japanese yen appreciates, Jenco's imports from Japan will probably ____ and if the Japanese yen depreciates, its imports from Japan will probably ____.

Question

Quizplus · Accepted Answer

Since Jenco's imports are invoiced in U.S. dollars and the price is not expected to change, fluctuations in the value of the yen will not affect the cost of imports, meaning the volume of imports is likely to remain constant regardless of currency value changes.

Jenco Co Imports Raw Materials from Japan, Invoiced in U