One of the ways that a weakening of the U.S.dollar relative to the Japanese yen may not necessarily be a benefit to a U.S.firm is that:
A)the government may not allow the pass through.
B)the government might erect tariff barriers.
C)Japanese parts might become more expensive and when imported for inclusion into an exported product, prices might actually rise.
D)other currencies might be the ones actually traded.
E)costs can be cut in other ways.

Question

Quizplus · Accepted Answer

A weakening U.S. dollar relative to the Japanese yen makes Japanese parts more expensive for U.S. firms. If these parts are imported for inclusion in products that are then exported, the overall cost of production might increase, potentially raising prices and negating the benefits of a weaker dollar.

One of the Ways That a Weakening of the U