Trak Co. (of the U.S.) presently serves as a distributor of products by purchasing them from other

Question:

Trak Co. (of the U.S.) presently serves as a distributor of products by purchasing them from other U.S. firms and selling them in Japan. It wants to purchase a manufacturer in India that could produce similar products at a low cost (due to low labor costs in India) and export the products to Japan. The operating expenses would be denominated in Indian rupees. The products would be invoiced in Japanese yen. If Trak Co. can acquire a manufacturer, it will discontinue its existing distributor business. If the yen is expected to appreciate against the dollar, and the rupee is expected to depreciate against the dollar, how would this affect Trak's direct foreign investment?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: