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:

Luteinizing Hormone

A hormone produced by the anterior pituitary gland that triggers ovulation and stimulates the production of sex hormones in both males and females.

Melatonin

Hormone (amino acid derivative) secreted by the pineal body; inhibits the secretion of gonadotropin-releasing hormone from the hypothalamus.

Photoperiod

The duration of daylight in a 24-hour period, influencing biological processes in organisms.

Pineal Gland

A small, pine cone–shaped structure that projects from the epiphysis of the diencephalon; produces melatonin; also called pineal body.