Chrysler Corp. wanted to sell its Jeeps in Japan. The car was priced in U.S. dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 3,100,000 Japanese yen, and the Japanese could not afford to buy it. Its price was set without regard for the
A) balance of price.
B) currency exchange rate.
C) reciprocity price.
D) balance of payments.
E) balance of trade.

Question

Quizplus · Accepted Answer

The price of the Jeep in Japan was set without considering the currency exchange rate, which affected its affordability in the Japanese market.