Assume the British pound appreciates against the dollar while the Japanese yen depreciates against the dollar. Which of the following is true?

Question

Quizplus · Accepted Answer

When the Japanese yen depreciates against the dollar, goods produced in Japan become cheaper for American buyers, making it advantageous for Japanese exporters to shift operations back to Japan to increase sales in the American market. Conversely, if the British pound appreciates against the dollar, British goods become more expensive for American buyers, making it less advantageous to shift operations from Japan to Britain for the purpose of increasing American sales.

Assume the British Pound Appreciates Against the Dollar While the Japanese