What would the dollar price of the car be

Reference no: EM13302498

Early in September 1983, it took 245 Japanese yen to equal $1. More than 20 years later that exchange rate had fallen to 108 yen to $1. Assume the price of a Japanese-manufactured automobile was $8,000 in September 1983 and that its price changes were in direct relation to exchange rates.

a. Has the price, in dollars, of the automobile increased or decreased during the 20-year period because of changes in the exchange rate?

b. What would the dollar price of the car be, assuming the car's price changes only with exchange rates?

Reference no: EM13302498

Questions Cloud

What is the force acting upwards on the mast : A boat's mast is held by two cables, one attached to the front of the ship and the other to the back. What is the force acting upwards on the mast exerted by the boat at the bottom of the mast

By how much does bradford required return exceed : By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

Explain karl marxs economic theory : Karl Marx''s economic theory describe major environmental issues that must be considered when doing business in Trinidad and Tobago.

Theories on soft drink consumption can affect bone health. : Nutrition and medical professionals are concerned about the heavy consumption of soft drinks, as it may be detrimental to bone health. There are several theories associated with soft drink consumption, so please list the theories and provide an expla..

What would the dollar price of the car be : Has the price, in dollars, of the automobile increased or decreased during the 20-year period because of changes in the exchange rate?

Explain the difference between the client and the server : What is the difference between the client and the server. What is the difference between server-side and client-side scritping? Why are they separate

Our kidneys are constantly trying to maintain fluid balance : Our kidneys are constantly trying to maintain fluid balance by either excreting or retaining fluid. How is fluid primarily lost by the body, AND besides answering this question, please list the situations that can cause a signficant loss of fluid.

Locate the image of the coin : A coin 2.3 cm in diameter is held 37 cm from a concave spherical mirror of 40 cm radius of curvature. Locate the image of the coin

Find difference in mercury levels inside and outside tube : A glass tube with inside diameter of 2-mm is inserted vertically into a dish of mercury at 20°C. Determine the difference in mercury levels inside and outside the tube.

User Account

All Pages