Assume That the Japanese Yen Is Expected to Depreciate Substantially

question 50

Multiple Choice

Assume that the Japanese yen is expected to depreciate substantially over the next year. A U.S.-based MNC has a subsidiary in Japan, where its costs exceed revenues. The overall value of the MNC will ____ because of the yen's depreciation.

• A)decrease
• B)increase
• C)remain unchanged
• D)A and C are possible

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