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4. Recently, the Euro has been losing strength in currency exchange rates versus the Japanese yen but the US dollar has been stronger relative to

4. Recently, the Euro has been losing strength in currency exchange rates versus the Japanese yen but the US dollar has been stronger relative to the yen.

BMW manufactures cars for the Japanese market in both Germany and the US. If they need to expand one of their factories, based on exchange rates alone, which factory should they expand?

a. the German factory

b. the US factory

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