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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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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