6) What are the effects of a strong USD for the United States? A) Imports into the United States become cheaper. B) U.S. goods become more expensive overseas C) It has no effect D) Both A and B are correct 7) Assume Toxota has production facilities in both Japan and Mexico, while its competitor Honda has only production facilities in Japan. Also assume Toyota does not import parts into Mexico from Japan and neither company sells cars in Mexico. As the peso weakens against the Japanese yen A) Honda is not affected. B) Toyota is better off, because its costs have gone down. C) Toyota is worse off, because its revenues have gone down. D) Honda is better off, because its revenues have gone up. 8) A firm may not be able to pass through changes in the exchange rate A) in markets with low product differentiation or in markets with high price inelasticities ) in markets with high price inelasticities. C) in markets with low product differentiation. D) none of the options s