ncluding staggered dual mufflers and down to the front and rear fenders.
It is in the area of price that Harley was able to prove its ability to compete effectively against the Japanese. Japanese manufacturers offered competent motorcycles at low prices. In 1978, a Yamaha 650 Special sold for $1889; the 1981 Virago (also by Yamaha) cost $2998. At the time, the exchange rate was partly responsible: the rate was 268 yen to the dollar in 1977, and 220 yen to the dollar in 1981. By 1986, the yen had fallen to 168 to the dollar, making the Harley's more attractive. By 1987, a 700 Virago cost $3649, Honda's 700 Shadow cost $3898, and Harley's low-end model, an 883 Sportster cost $3995. Harley's now competed on the same pricing ground as their foreign competition, and offered what the public perceived to be "better" bikes (Van Hooydonk, 1991, p. 68).
Of course, Harley also benefited from the tariffs the ITC had imposed during the early 1980s, but by 1987, the tariffs combined with the change in foreign exchange rates to provide a more level playing fiel
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