If U.S dollar strengthens against the Japanese Yen, Japanese producers selling goods in U.S markets will have to increase the prices of products to recover the extra cost arising from currency fluctuation.

Question

Quizplus · Accepted Answer

If U.S dollar strengthens against Japanese Yen, Japanese producers will be able to sell their goods at a cheaper rate in the U.S markets as they will now receive more Yen for the same dollar amount of sale and hence will be tempted to reduce prices.

If US Dollar Strengthens Against the Japanese Yen, Japanese Producers Selling