Day: July 3, 2021

The MOST LIKELY explanation for this was the?

Select ONE answer:

1. increasing strength of the Japanese currency
2. increasing unemployment level in Japan
3. increasing rate of inflation in Japan
4. increasing Japanese interest rates

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct ==> Definition of a strengthening currency; its value is increasing and will buy more of other currencies OR definition of an exchange rate; The price of one currency expressed in terms of another currency.  Japanese buyers now get more sterling for their yen as the yen has appreciated against the sterling.  This makes Lucy Michelle products cheaper for buyers in Japan so demand has increased.
2. Not correct
3. Not correct
4. Not correct

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