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Question
When the exchange rate S/$ was 100, a U.S. firm imports one Toyota automobile at 1,000,000 and agrees to make payments 60 days from the day of contract signing. On day 45, the exchange rate value changes to S/$ = 80, what would happen to the U.S. import value from this exchange rate change?
a. If the contract is written in dollar, the import value decreases.
b. If the contract is written in dollar, the import value increases.
c. If the contract is written in yen, the import value decreases.
d. If the contract is written in yen, the import value increases.
Answer
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Related questions
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