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The ¥/€ Spot Exchange Rate Is 130 Yen Per Euro

Question 10

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The ¥/€ spot exchange rate is 130 yen per euro. Inflation rates in Japan and Germany are similar. Over the past year the ¥/€ rate moved from 110 to 130. Is this good news or bad news for Japanese firms competing with German firms in the automobile market?

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The weakening of the yen against the eur...

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