Which of the following is most likely to occur if a U.S. firm outsources some of its business operations to a Japanese company, and the Japanese yen strengthens against the dollar?
A) The probability of intellectual property laws being enforced would significantly decrease in Japan.
B) The U.S. company will experience additional cost savings in using the services of the Japanese company.
C) Outsourcing business operations to Japan would become less expensive.
D) The U.S. company will experience higher costs in using the services of the Japanese company.

Question

Quizplus · Accepted Answer

When the Japanese yen strengthens against the dollar, it means that more dollars are needed to buy the same amount of yen. Therefore, the cost for the U.S. company to pay for services in yen increases, leading to higher costs for using the services of the Japanese company.

Which of the Following Is Most Likely to Occur If