A Japanese car manufacturer exports cars that are priced in yen to the U.S. The

Question

A Japanese car manufacturer exports cars that are priced in yen to the U.S. The demand for those cars declines when the yen is strong. The manufacturer also produces some cars in the United States with U.S. materials, and those cars are priced in dollars. The manufacturer could reduce its economic exposure by: pricing its exports in dollars. ?relying completely on Japanese suppliers for its parts. ?closing down most of its plants in the United States. none of the options listed producing more automobiles in the United States
A Japanese car manufacturer exports cars that are priced in yen to the U.S. The demand for those cars declines when the yen is strong. The manufacturer also produces some cars in the United States with U.S. materials, and those cars are priced in dollars. The manufacturer could reduce its economic exposure by: pricing its exports in dollars. ?relying completely on Japanese suppliers for its parts. ?closing down most of its plants in the United States. none of the options listed producing more automobiles in the United States
A Japanese car manufacturer exports cars that are priced in yen to the U.S. The demand for those cars declines when the yen is strong. The manufacturer also produces some cars in the United States with U.S. materials, and those cars are priced in dollars. The manufacturer could reduce its economic exposure by: pricing its exports in dollars. ?relying completely on Japanese suppliers for its parts. ?closing down most of its plants in the United States. none of the options listed producing more automobiles in the United States

Explanation / Answer

Answer is this case will be producing more automobiles in the United States.

Explanation: During Strong Yen environment, US Dollar will be cheaper. So, the car produced in US and priced in USD will be cheaper.. So, their demand will be more. In this way manufacturer could reduce its economic exposure

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