If the U.S. dollar depreciates relative to the Japanese yen, what will happen to the price
of an automobile produced by the Ford Motor Company in Detroit, Michigan as far as
the American consumer is concerned?

Question

Quizplus · Accepted Answer

The Answer is Nothing. The prices of domestic products do not change for the domestic consumer regardless of whether the home currency appreciates or depreciates.

If the US Dollar Depreciates Relative to the Japanese Yen, What Will