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Pepkoe's Competitiveness Pepkoe sells its popular soft-drink in Japan which competes head-on with Suzukoe's Japanese version of the soft-drink. In early 2005, when the exchange

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Pepkoe's Competitiveness Pepkoe sells its popular soft-drink in Japan which competes head-on with Suzukoe's Japanese version of the soft-drink. In early 2005, when the exchange rate was 110 JPY/S, Pepkoe's price was $ 2 per bottle, while Suzukoe's price was 200 JPY per bottle. By late 2005, the exchange rate had moved to 120 JPY/ S, but neither Pepkoe nor Suukoe had changed their prices for their soft-drinks. What has been the impact on Pepkoe's competitiveness in the Japanese market? i) ii) What has been the impact on the relative purchasing power of the US consumer of soft-drinks

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