Friends University Toyota Foreign Exchange Rates Discussion

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I'm working on a management case study and need support to help me learn.


Case Study : Toyota's Yen Advantage

Read the Opening Case Toyota's Yen Advantage on pages 209-210. Answer the following questions:

  1. What is Toyota's Yen Advantage?
  2. Why is the value of currencies so important to the global automobile industry?
  3. How do foreign exchange rates affect trade and investment undertaken by firms such as Toyota, Chrysler, Fiat, Ford, GM, and Honda?
  4. What determines foreign exchange rates?

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Case Study – Toyota

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Case Study – Toyota
Toyota’s advantage is that the value of the Yen continues to decrease when compared to
the dollar. That gives Toyota the advantage to cash in on the financial gain in a way other
companies cannot. Consequently, the company has an immedia...

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