A) (multiple-choice) Which one of the two exchange rate situations could erode the competitive position of Honda, a Japanese car manufacturer, in the U.S. market if the firms cars sold in the U.S. were produced domestically in Japan?

a. The Japanese yen becomes weaker relative to the U.S. dollar

b. The Japanese yen becomes stronger relative o the U.S. dollar

B) (short-answer) Suggest a strategy that Honda could use to mitigate the adverse exchange rate effects on its operating cash flows in the U.S. market