Sanyo produces audio and video consumer goods and exports a large fraction of its output to the

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Sanyo produces audio and video consumer goods and exports a large fraction of its output to the United States under its own name and the Fisher brand name. It prices its products in yen, meaning that it seeks to maintain a fixed price in terms of yen. Suppose the yen moves from ¥118.39/ US$ to ¥110/US$. What currency risk does Sanyo face? How can it reduce its exposure?

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Fundamentals Of Corporate Finance

ISBN: 9781259087585

6th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts

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