Chrysler Corporation wanted to sell its Jeeps in Japan.The SUV was priced in U.S.dollars at about $19,000, but when it reached the Japanese car showrooms, its price was over 31,000 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)equity exchange factor.

Question

Quizplus · Accepted Answer

The difference in price between the U.S. dollars and Japanese yen suggests that the pricing was not adjusted according to the currency exchange rate, leading to an unaffordable price for the Japanese market.

Chrysler Corporation Wanted to Sell Its Jeeps in Japan