In 1983, the exchange rate was 245 yen per dollar, so the cost of an $8,000 Japanese car in yen was:
Cost in yen (1983) = 8,000 dollars × 245 yen/dollar = 1,960,000 yen
Now, with the current exchange rate at 80 yen per dollar, we can convert the same $8,000 car into yen:
Cost in yen (current) = 8,000 dollars × 80 yen/dollar = 640,000 yen
This means that, with the current exchange rate, a Japanese car that once cost 1,960,000 yen is now priced at only 640,000 yen. This significant drop indicates that the Japanese yen has appreciated against the US dollar over time, making Japanese goods cheaper for people in Japan and potentially increasing their sales abroad. However, for US consumers, it might make Japanese cars more affordable now compared to their cost in 1983.