When investors anticipate an increase in Japanese stock market returns, which of the following best describes the expected impact on the Yen and its influence on trade between Japan and France?

When investors expect the Japanese stock market to do well, they are likely to buy more Japanese stocks. This increased demand for Japanese stocks often leads to a higher demand for the Yen, as investors need to exchange their currency for Yen to make these purchases. As the Yen strengthens, its value increases compared to other currencies, like the Euro used in France. This can make Japanese exports more expensive for French buyers, potentially reducing trade from Japan to France. For example, if a French company wants to buy cars from Japan, a stronger Yen means they would have to spend more Euros, which might lead them to consider purchasing from other countries instead.