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Your selected country is experiencing a strong and appreciating currency against the U.S. dollar. How could...

Your selected country is experiencing a strong and appreciating currency against the U.S. dollar. How could this affect the price of your product to export in your selected country?

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Answer #2

If the currency of Japan, Yen is appreciating and we are exporting some US product to Japan then it will decrease the price of the Us goods to Japan and increase the US exports. the more the Yen appreciates against the dollar the more we will be able to export the goods to japan.

For example, If $1 = 100 Yen. Then the goods which was $1 in the Japanese were paying 100 yen for it Now after the appreciation $1 = 80 yen then the same good will cost only yen i.e. 20 yen less in japan, it will increase the exports. they will be buying more at a lower price.  

answered by: anonymous
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