Suppose that the Japanese television manufacturers offer a high definition television set to the U.S.market compatible with current transmission signals,i.e.it works immediately.In the foreign exchange market,

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If the Japanese television manufacturers offer a high definition television set to the U.S. market compatible with current transmission signals, it would decrease the demand for dollars. This is because the U.S. consumers would be buying more Japanese televisions, which would require them to exchange their dollars for Japanese yen to purchase the televisions. The increased demand for Japanese yen would decrease the demand for dollars in the foreign exchange market, causing a decrease in the value of the dollar.

Suppose That the Japanese Television Manufacturers Offer a High Definition