When the Exchange Rate S_¥/$ Was 100,a U

question 2

Multiple Choice

When the exchange rate S_¥/$ was 100,a U.S.firm imports one Toyota automobile at ¥1,000,000 and agrees to make payments 60 days from the day of contract signing.On day 45,the exchange rate value changes to S_¥/$ = 80,what would happen to the U.S.import value from this exchange rate change?

• A) If the contract is written in dollar, the import value decreases.
• B) If the contract is written in dollar, the import value increases.
• C) If the contract is written in yen, the import value decreases.
• D) If the contract is written in yen, the import value increases.