1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alexgriva [62]
3 years ago
12

In Japan, suppose Honda’s export price per vehicle is ¥4,000,000 and that the exchange rate is ¥125/$. The one-year Japanese yen

interest rate is 1.0%; the one-year U.S. interest rate is 3.0%. Assume that International Fisher holds. Assuming a 60% pass-through of exchange rate changes, what would the price of a Honda be at the end of the coming year in U.S. dollars?
Business
1 answer:
NemiM [27]3 years ago
5 0

Answer:$31,379

Explanation:Applying the

Fishers international effect

1+Ic/1+Ib=S1/S0

Where Ib represents the interest rate in base country which is Japan in this case

Ic represents the interest rate in counter country in this case,US

S0 is the base spot rate or exchange rate at the moment while S1 is the spot rate at the end of the coming year

Ic =3%=0.03

Ib=1%=0.01

So=145

Substituting in the formula

1.03/1.01=S1/125

Cross multiplying

S1=125(1.03)/1.01=127.475

So price in US at spot 127.475 will be ¥4,000,000/127.475=$31,379

You might be interested in
Antonio works for a textbook publisher. However, his dream is to establish a home-based business providing his services to a var
yKpoI14uk [10]

Answer:

True

Explanation:

Because the reason is that the micropreneur is a person who sets up his own business which is very small enough. The micropreneur also manages its own business as well. The risks associated with the business is also bear by the employee as well. So in the nutshell, a micropreneur is very small business with a very small risks associated with the business. The examples includes of freelancers who are not commited to any employer for long term and is self employed. Contracts the work and deliver the work within the time agreed.

7 0
3 years ago
The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management states that significant eth
posledela

Answer:

a. submitted to the next higher managerial level.

Explanation:

IMA states the following standards of conduct in management accounting: competence, confidentiality, integrity and credibility.... Confidentiality entails accountants to divulge information only at the behest of their supervisor. Integrity forbids managers to engage in unethical behavior. Once an issue can't be resolved the standard procedure is to move a step up the ladder for further assistance.

3 0
3 years ago
Wendy is setting up a Customer Match strategy to reach a list of prospective customers. What must she provide?
bogdanovich [222]

Answer:Customer relationship management data

Explanation:

8 0
3 years ago
Walmart's "everyday low prices" selling proposition is effective primarily because it is
Angelina_Jolie [31]
Persuading you to buy their items by retailing them as "low prices"
4 0
3 years ago
When a home builder decides to computerize all of its production schedule, it directly answer the what how or who question
pashok25 [27]

Answer:

The answer is How.

Explanation:

When a home builder decides to computerize all of its production schedule , it directly answers the HOW question.

Hope this helps!! ;)

4 0
3 years ago
Other questions:
  • Reciprocity occurs among individuals who are better at taking the perspective of the other in a negotiation, and can also be ‘co
    10·1 answer
  • Price controls in Venezuela resulted in a thriving black market in many goods. The black market arose because the price controls
    11·2 answers
  • Some goods can be produced at low cost only if they are produced in large quantities. this phenomenon is called
    7·1 answer
  • A partial adjusted trial balance of Piper Company at January 31, 2017, shows the following:
    10·1 answer
  • Based on his​ preferences, Bill is willing to trade 4 movie tickets for 1 ticket to a basketball game. If movie tickets cost $8
    5·1 answer
  • Give an example of a strong manager and an organization that you worked with in the past or presently.
    6·1 answer
  • The combination of media, Internet, entertainment, and phone services into a single device illustrates the principal of
    7·1 answer
  • in preparing the operating activities section of a statement of cash flows using the indirect method, net income should be adjus
    13·1 answer
  • What is the BEST way to stay organized? Person with a descriptive and correct one sentence answer will receive brainliest for th
    15·2 answers
  • When a firm pursues a(n) ___________, it sells the same products or services in both domestic and foreign markets.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!