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Suppose a Japanese firm is selling cars for $15,000 in the US. The current exchange rate is 100/$. Explain the situation for the firm as

Suppose a Japanese firm is selling cars for $15,000 in the US. The current exchange rate is 100/$. Explain the situation for the firm as the exchange rate drops to 80/$. How will the firm decide its pass-through decision? What are the main factors it faces in making its decision?

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