Jenco Co. imports raw materials from Japan, invoiced in U.S. dollars. The price it pays is not expected to change for the next several years. If the Japanese yen appreciates, its imports from Japan will probably ____ and if the Japanese yen depreciates, its imports from Japan will probably ____.

Question

Quizplus · Accepted Answer

Since Jenco Co. is invoiced in U.S. dollars, changes in the yen's value do not affect the dollar price of imports, so the imports will stay the same regardless of yen appreciation or depreciation.

Jenco Co Imports Raw Materials from Japan, Invoiced in U