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 JPY109.43 = USD1 to JPY117.13 = USD1. What currency risk does Sanyo face? How can it reduce its exposure?
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If the dollar depreciates then to maintain a fixed yen price Sanyo will need to raise the dollar pri...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260566093
10th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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