CHAPTER 10 QUIZ 16

CHAPTER 10 QUIZ 16
Measuring Changes in Economic Exposure. Toyota Motor Corp. measures the sensitivity of its
exports to the yen exchange rate (relative to the U.S. dollar). Explain how regression analysis
could be used for such a task. Identify the expected sign of the regression coefficient if Toyota
primarily exports to the United States. If Toyota established plants in the United States, how might
the regression coefficient on the exchange rate variable change?

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