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Assume that the export price of a Toyota Corolla from Osaka, Japan is 2,150,000. The spot exchange rate at the beginning of the year was

Assume that the export price of a Toyota Corolla from Osaka, Japan is 2,150,000. The spot exchange rate at the beginning of the year was 87.60/$. What was the $ price of Corolla at the beginning of the year? The new spot rate at the end of the year becomes 85.71/$. The price of the car remains the same in Japan at 2,150,000. Assuming 100% pass-through of exchange rate, what will the dollar price of a Corolla be at the end of the year?

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$24,543; $25,083

$21,583; $25,083

$24,543; $21,583

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