The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because the yen is gaining strength compared to the U.S. dollar making it cheaper for Japanese customers to buy U.S. products.

Question

Quizplus · Accepted Answer

A low value of the dollar means a dollar is traded for less foreign currency. A high value of the dollar means a dollar is trading for more foreign currency. When the U.S. dollar is losing strength against the foreign currency, it is cheaper for foreign customers to buy U.S. products. In this case, the customer will trade fewer yen for the value of the U.S. bicycles.

The Ozark Bike Company Recently Entered into an Agreement with a Large