If the Exchange Rates, After Fees, in Tokyo Are ¥1

question 64

Multiple Choice

If the exchange rates, after fees, in Tokyo are ¥1 000 = €6 = $9 and the exchange rates in Paris are €1 = $1.5 = ¥171, which of the following would you expect to occur?

• A)a surge in conversion of euros to yen in Paris
• B)a surge in conversion of dollars to yen in Tokyo
• C)a surge in conversion of euros to dollars in Paris
• D)a surge in conversion of euros to yen in Tokyo

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Definitions:

Direct Channels

A method of distribution where manufacturers sell directly to consumers without using intermediaries.

Cost-plus Pricing Strategy

A pricing method where a fixed percentage or amount is added to the total cost of producing a product or service to determine its selling price.

Fixed Margin

A set profit margin that does not vary with sales volume or production costs.

Domestic Market

The marketplace of goods and services offered within a country's borders, as opposed to international markets.