If the US Congress Imposes a Quota on Imports of Japanese Cars

question 4

Multiple Choice

If the U.S. Congress imposes a quota on imports of Japanese cars due to claims of "unfair" trade practices,and Japanese demand for American exports increases at the same time,then,in the long run ________,everything else held constant.

• A)the Japanese yen will appreciate relative to the U.S. dollar
• B)the Japanese yen will depreciate relative to the U.S. dollar
• C)the Japanese yen will either appreciate,depreciate or remain constant against the U.S. dollar
• D)there will be no effect on the Japanese yen relative to the U.S. dollar

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Definitions:

Production Capacity

The maximum output that a business can produce in a given period with the available resources.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Unnecessary Steps

Processes or actions within a workflow that do not add value to the product or service and could be eliminated to improve efficiency.

International Federation

A global organization or association that represents and governs a specific set of standards or interests across nations.