xchange rate would have to change strongly in favor of the United States dollar. As an example, an exchange rate of US$1: 129 Japanese yen would cause it to be profitable for Suzu Manufacturing Company to buy the part manufactured in Japan. With an exchange rate of US$1: 129 Japanese yen, Suzu Manufacturing Company would be required to convert 2451 Japanese yen to United States dollars, calculated as follows: US$ 19 times 129 Japanese yen = 2451 Japanese yen.
The scenario described in this question assumes (again) that a specific part required by Suzu Manufacturing Company (Tokyo) is available in Japan for a price of 2450 yen per unit. An identical part made in the United States (again) is available to the company for a cost of US$18 per unit plus a freight charge of US$1 per unit, or a total cost of Suzu Manufacturing Company of US$19
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