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Q1. What would happen to relative value of US dollar and Japanese yen if Japan raises its interest rate? Explain the process. Q2. A Japan-made
Q1. What would happen to relative value of US dollar and Japanese yen if Japan raises its interest rate? Explain the process.
Q2. A Japan-made flash driver is sold at 10,000 in Japan and sold at $100 in the US market. A US-made flash driver is sold at $100 in the US and 10,000 in Japanese market now. What would happen to the price of imports and exports in Japan and the US if Japan declares 10% revaluation of Japanese yen? What would happen to the trade between two countries? Explain it.
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