An increase in the value of the yen against the U.S. dollar can cause the Japanese automaker Toyota to either ________ on its U.S. sales.

A) lose market share or reduce its profit margin
B) gain market share or reduce its profit margin
C) lose market share or increase its profit margin
D) gain market share or increase its profit margin

Question

Kathy Haumersen · Accepted Answer

Final Answer : A, Explanation :  An increase in the value of the yen makes Toyota's cars more expensive in dollars. This means that Toyota may lose market share as consumers may opt for cheaper alternatives. Alternatively, Toyota could reduce its profit margin on sales to keep its prices competitive.

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