If Japan Realizes Technological Improvements in the Production of Automobiles

question 61

True/False

If Japan realizes technological improvements in the production of automobiles, which lowers its production costs relative to foreign producers, Japanese exports will rise, and the yen's exchange value will appreciate under a system of floating exchange rates.

---

Definitions:

Rain Shadow Effect

A meteorological phenomenon where mountains block the passage of rain-producing weather systems, creating a dry area on the leeward side.

Vegetation

Plants in general, or the plant life of a particular area, ecosystem, or period.

Windward Side

The side of a mountain or island that faces the direction from which the wind is coming, typically receiving more rain and having more lush vegetation than the leeward side.

Leeward Side

The side of an island, mountain, or other landmass that is sheltered from the prevailing wind, typically receiving less rain and having different climatic conditions than the windward side.