A strengthening of the U.S.dollar relative to the Japanese yen has the effect of:
A)strengthening the Japanese position in the United States.
B)strengthening the U.S.position in Japan.
C)weakening the dollar in Europe.
D)strengthening the yen in Europe.
E)all positions remain unchanged.

Question

Quizplus · Accepted Answer

When the U.S. dollar strengthens relative to the Japanese yen, it means that for each dollar, you can get more yen than before. This makes U.S. goods more expensive for Japanese consumers and Japanese goods cheaper for U.S. consumers. As a result, it strengthens the Japanese position in the United States because Japanese products become more competitive in the U.S. market.

A Strengthening of the U