Chrysler Corporation 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 ¥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 price of the Jeep being set in U.S. dollars without taking into account the currency exchange rate resulted in it being too expensive for Japanese consumers to afford. Therefore, the correct answer is B - currency exchange rate.

Chrysler Corporation Wanted to Sell Its Jeeps in Japan