What had been the impact on pepkoes competitiveness in the, Financial Management

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What had been the impact on pepkoes competitiveness in the

Pepkoe’s competiveness:

Pepkoe sells its popular soft-drink in Japan which competes head-on with Suzukoe’s Japanese version of the soft-drink. In early 2005, when the exchange rate was 110 JPY/$, Pepkoe’s price was $2 per bottle, while Suzukoe’s price was 200 JPY per bottle. By late 2005, the exchange rate has moved to 120 JPY/$, but neither Pepkoe nor Suzukoe has changed their prices for their soft-drinks.

i) What had been the impact on Pepkoe’s competitiveness in the Japanese market?

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