A US Automobile Dealer Has Ordered a Fleet of Japanese Cars

question 215

Multiple Choice

A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery) . At the time the order was placed, the exchange rate was 100 yen per U.S. dollar. When the fleet arrived the exchange rate had become 200 yen per U.S. dollar.

• A) This change in the foreign exchange rate will hurt the U.S. importer.
• B) This change in the foreign exchange rate will hurt the Japanese exporter.
• C) This change in the foreign exchange rate will benefit the U.S. importer.
• D) This change in the foreign exchange rate will benefit the Japanese exporter.

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Definitions:

Fertility Rates

Fertility rates describe the average number of children born to a woman over her lifetime within a population.

Modern Medicine

The practice of medicine based on the application of scientific knowledge, technology, and research to prevent, diagnose, and treat diseases.

Immigration Rates

The frequency or number of individuals moving into a country or region to live permanently, impacting the demographic composition.

Life Expectancy

Average age to which people in a particular population are expected to live.