If Sony keeps the price of PlayStation 3 constant in terms of dollars, what is the impact on Sony of a stronger yen?

Question

Quizplus · Accepted Answer

If Sony keeps the price of PlayStation 3 constant in terms of dollars, a stronger yen would increase the cost of production for Sony. This increase in cost would lower the profit margins for Sony, which indicates the correct option is C, lower profit. The option of a decline in exports to the United States or an increase in imports from the United States does not directly relate to Sony's profit margins. Higher profit is not a likely outcome when production costs increase.

If Sony Keeps the Price of PlayStation 3 Constant in Terms