Assume Isuzu produces a car in Japan for $1.8 million. On June 1, when new models are introduced, the exchange rate is \150/USD. Consequently, the automaker sets the sticker price for the car at USD 12,000. By August 1, the exchange rate has dropped to \125/USD. Isuzu is worried that it will receive fewer Yen per sale ($12,000 ~ 125 = 1.5 million). (a) What scenario(s) could explain the trajectory of the exchange rate? (3 points; 150 words) (b) What alternative options does Isuzu have to mitigate the effect of exchange rate changes? (5 points; 250 words) (c) What strategy would you recommend for this car company? (5 points; 250 words) (d) Suppose the Bank of Japan intervenes in early October to push down the value of the Yen which subsequently moves to X225/USD. What problems and/or issues does it present for Japanese and American car companies? (2 points; 100 words) Assume Isuzu produces a car in Japan for $1.8 million. On June 1, when new models are introduced, the exchange rate is \150/USD. Consequently, the automaker sets the sticker price for the car at USD 12,000. By August 1, the exchange rate has dropped to \125/USD. Isuzu is worried that it will receive fewer Yen per sale ($12,000 ~ 125 = 1.5 million). (a) What scenario(s) could explain the trajectory of the exchange rate? (3 points; 150 words) (b) What alternative options does Isuzu have to mitigate the effect of exchange rate changes? (5 points; 250 words) (c) What strategy would you recommend for this car company? (5 points; 250 words) (d) Suppose the Bank of Japan intervenes in early October to push down the value of the Yen which subsequently moves to X225/USD. What problems and/or issues does it present for Japanese and American car companies? (2 points; 100 words)