If a US Firm Does Business with a Firm in Japan, the Japan

question 97

Multiple Choice

If a U.S. firm does business with a firm in Japan, the U.S. firm must convert:

• A) euros into yen.
• B) yen into euros.
• C) yen into dollars.
• D) dollars into yen.

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Definitions:

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country possesses and can exploit for manufacturing and service provision.

Technology

The technical means for producing goods and services.

Heckscher-Ohlin Model

An economic theory that proposes countries will export products that utilize their abundant and cheap factors of production and import goods that require resources that are rare or expensive domestically.

Endowment

An endowment is the total of a person's or entity's assets, minus liabilities, considered in the context of their financial impact or wealth.