Toyota Motor Company, a Japanese company, makes most of its sales outside Japan. Therefore, Toyota's profitability depends on the value of yen relative to other currencies. If Japanese yen ____________ relative to U.S. dollar, Toyota's profitability ______________.

A. declines; declines

B. increase; increases

C. increases; decreases

D. remains constant; declines

Which of the following modes of international business will be impacted negatively by tariffs and import duties?

A. EXPORTS

B. LICENSING

C. FRANCHISING

D. JOINT VENTURE

_______ are most commonly classified as a direct foreign investment.

1. Purchases of international stocks
2. Licensing agreements
3. Exporting transactions
4. Foreign acquisitions

You are given the following exchange rate

Bid Ask

Euro 1 Yen 100 125

A Japanese business executive wants to go to Germany, given the exchange rate, how many euro can a Japanese get for Yen 200,000?