Lampon Co Is a U

question 83

Multiple Choice

Lampon Co. is a U.S. firm that has a subsidiary in Hong Kong that produces light fixtures and sells them to Japan, denominated in Japanese yen. Its subsidiary pays all of its expenses, including the cost of goods sold, in U.S. dollars. The Hong Kong dollar is pegged to the U.S. dollar. If the Japanese yen appreciates against the U.S. dollar, the Hong Kong subsidiary's revenue will ____, and its expenses will ____.

• A) increase; decrease
• B) decrease; remain unchanged
• C) decrease; increase
• D) increase; remain unchanged

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Definitions:

Liberty

A state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Cult Of Domesticity

A prevailing value system among the upper and middle classes during the 19th century in the United States and Britain that emphasized the role of women as custodians of morality and domesticity.

Market Revolution

The major transformation in the 19th century U.S. economy characterized by rapid industrialization, expansion of markets, and significant social changes.

Republican Motherhood

The ideology that emerged as a result of American independence where women played an indispensable role by training future citizens.