Question

​Jenco Co. imports raw materials from Japan, invoiced in U.S. dollars. The price it pays is not expected to change for the next several years. If the Japanese yen appreciates, Jenco’s imports from Japan will probably ____ and if the Japanese yen depreciates, its imports from Japan will probably ____.

Answer 1

Answer:

stay the same; stay the same

Explanation:

Since in the question it is mentioned that Jenco Co. imported the raw material from Japan and the price is not changed as predicted now if the Japanese yen rises so the imports would remain the same and the same case with the decline i.e the imports from Japan would also stays the name

Therefore there would be no change in case of appreciation and depreciation