Assume the British Pound Appreciates Against the Dollar While the Japanese

question 18

Multiple Choice

Assume the British pound appreciates against the dollar while the Japanese yen depreciates against the dollar. Which of the following is true?

• A) Japanese exporters can increase U.S. sales by shifting operations from their British subsidiaries to Japan.
• B) British exporters can increase U.S. sales by shifting operations from their Japanese subsidiaries to Britain.
• C) U.S. exporters can increase sales to Japan by shifting operations from Japanese subsidiaries to U.S. subsidiaries.
• D) British exporters can increase U.S. sales by shifting operations from their Japanese subsidiaries to Britain AND U.S exporters can increase sales to Japan by shifting operations from Japanese subsidiaries to U.S. subsidiaries.

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Definitions:

International Shipping

The process of transporting goods across national borders, involving regulatory compliance and logistics management.

Real GDP

Real GDP, or Real Gross Domestic Product, measures the value of all goods and services produced by an economy in a specific period, adjusted for inflation, providing a more accurate representation of an economy's size and growth rate.

Standardized Shipping Containers

Uniformly sized containers used in global shipping, which simplify transportation, handling, and storage of goods.

Ground Transportation

Travel or movement of people or goods using vehicles operating on the ground, such as buses, trains, or cars.