Suppose That the Yen-Dollar Foreign Exchange Rate Changes from 130

question 472

Multiple Choice

Suppose that the yen-dollar foreign exchange rate changes from 130 yen per dollar to 140 yen per dollar. Then the yen has

• A) depreciated against the dollar, and the dollar has appreciated against the yen.
• B) depreciated against the dollar, and the dollar has depreciated against the yen.
• C) appreciated against the dollar, and the dollar has appreciated against the yen.
• D) appreciated against the dollar, and the dollar has depreciated against the yen.

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Definitions:

Lower Cost

The strategy or condition of achieving a reduction in expenses, leading to a competitive pricing advantage or higher profit margins.

Cost Focus

A business strategy aiming to become the lowest-cost producer in an industry for a particular segment or niche.

Generic Business Strategy

A basic framework for a business approach focusing on cost leadership, differentiation, or focus/niche to achieve competitive advantage.

Cost Focus

A business strategy that aims to become the lowest-cost producer in an industry or market segment to gain a competitive advantage.