If the Canadian Dollar Becomes Stronger in Relation to the Japanese

question 59

Multiple Choice

If the Canadian dollar becomes stronger in relation to the Japanese yen

• A) the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would fall in Canada.
• B) there would be no effect on the prices of Canadian-made products sold in Japan.
• C) the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would rise in Canada.
• D) the prices of all Canadian-made products would fall in Japan and the prices of all Japanese-made products would fall in Canada.
• E) the prices of all Canadian-made products would rise in Japan and the prices of all Japanese-made products would rise in Canada.

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Definitions:

Export Subsidies

financial support from governments to domestic companies for the purpose of promoting goods for export, aimed at increasing competitive advantage on the global stage.

Free Trade Agreement

A pact between two or more nations to reduce barriers to imports and exports among them by eliminating tariffs and import quotas.

Mexican Consumers

Individuals or households in Mexico that purchase goods and services for personal use.

Intellectual Property

Refers to creations of the mind for which exclusive rights are recognized, such as inventions, literary and artistic works, symbols, names, and images.