Assume that the Japanese yen rises against the U.S. dollar; that is; it will take more dollars to buy any given amount of Japanese yen. Describe why this increase simultaneously raises the real price of Japanese cars for U.S. consumers & lowers the real price of U.S. automobiles for Japanese consumers.
As the value of the yen rise relative to the dollar (and if the costs of production for Japanese and U.S. both automobiles remain unchanged), more dollars exchange for fewer yen. In response to the change in the exchange rate, the purchase of Japanese automobile priced in yen needs more dollars. Likewise, the purchase of a U.S. automobile priced in dollars needs fewer yen.