Question
Nissan produces a car that sells in Japan for 1.8 million. On September 1, the beginning of the model year, the exchange rate is 150:$1.
Nissan produces a car that sells in Japan for 1.8 million. On September 1, the beginning of the model year, the exchange rate is 150:$1. Consequently, Nissan sets the U.S. sticker price at $12,000. By October 1, the exchange rate has dropped to 125:$1. Nissan is upset because it now receives only $12,000 x 125 = 1.5 million per sale. What alternatives are open to Nissan to improve its situation?ListSEVENpossible strategies.
Suppose Apple is selling Mac computers in SwedenCronafor SEK 5,500 when the exchange rate is 1 SEK = $0.1225. If the SEK rises to $0.125, what price must Apple charge to maintain its dollar unit revenue?
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