Question

northwest powerwasher company recently entered into an agreement with a large japanese retailer to distribute its power washers in japan. what scenario would be the most favorable for northwest powerwasher company? select one: a. the yen is down against the u.s. dollar, making it cheaper for japanese customers to buy american products. b. the yen is gaining strength compared to the u.s. dollar, making it cheaper for japanese customers to buy american products. c. there are high tariffs on all mechanical products imported into japan. d. there are several companies already operating in japan that offer a similar product.

Explanation:

When the yen gains strength compared to the U.S. dollar, Japanese customers can buy American products more cheaply. This would increase the demand for Northwest PowerWasher Company's power - washers in Japan. High tariffs would increase costs and reduce competitiveness, and competition from existing companies offering similar products is not favorable. A weaker yen against the dollar would make American products more expensive for Japanese customers.

Answer:

B. The yen is gaining strength compared to the U.S. dollar, making it cheaper for Japanese customers to buy American products.