As the Profitability of Japanese Assets Rises Relative to the Profitability

question 68

True/False

As the profitability of Japanese assets rises relative to the profitability of Australian assets, Australian residents will make additional investments in Japan; this results in an increased demand for yen and a depreciation of the dollar under a system of floating exchange rates.

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Definitions:

Valid

Legally sound, effective, or binding; having a solid, cogent basis in logic or fact.

Job-related Reason

A cause or rationale directly linked to one's employment, often used in making decisions about hiring, firing, or workplace adjustments.

Subcontracting Restrictions

Regulations or limitations placed on the ability of companies to outsource work to other firms, often to protect employees' jobs or ensure quality.

Outsourcing Restrictions

Policies or practices aimed at limiting the transfer of jobs or tasks to external contractors or locations, often to protect domestic employment.