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GLOBAL FINANCE IN PRACTICE 1.3 The Peso, Dollar, Yen-and Crystal's payment would go to Niantic (U.S.), the primary Pokemon GO developer of Pokemon GO. Nintendo

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GLOBAL FINANCE IN PRACTICE 1.3 The Peso, Dollar, Yen-and Crystal's payment would go to Niantic (U.S.), the primary Pokemon GO developer of Pokemon GO. Nintendo of Japan would only receive its share of the sale proceeds after being converted The launch of Pokemon GO had been a bit delayed, from January from U.S. dollars to Japanese yen (JPY or V). In January, to July 2016, but was highly successful when the game did the spot exchange rate between the dollar and the yen was finally hit the market. By August, people all over the world V119.00/$, so Nintendo could have earned V116.60 on the were wandering about with their phone in hand in search of sale to Crystal Gomez. Pokestops and Pokemon. But despite all its success, for one of its owners-Nintendo of Japan (holding part interest)- Nintendo proceeds in Y Jan 2016 = Proceeds* x Spot rate (W/$) it was not proving to be all that profitable. The problem was = $0.9798 x V119.00/$ exchange rates. The Japanese yen had been gaining in value against most of the world's currencies, including the U.S. = V116.60 dollar. And in turn, many emerging market country currencies Unfortunately for Nintendo, by August, the Mexican peso was like the Mexican peso had been weakening against the dollar. down to Ps18.75/$, and the dollar was down to V102.50/$ Consider the case of Crystal Gomez of Mexico City. Crystal so the yen proceeds from Crystal's purchase had fallen by purchased 100 Pokecoins for 17 Mexican pesos (MXN or Ps). 25.5%, from V116.60 to only 192.93. The price of the Pokecoins in U.S. dollars in January 2016 would have equaled $0.9798 when converted to U.S. dollars (USD Ps17 or $) at the spot exchange rate of Ps17.35/$ in January 2016. Nintendo proceeds in YAug 2016 Ps18.75/$ X V102.50/$ Price in pesos = 192.93 Price jan 2016= Spot exchange rate in pesos per dollar Unfortunately, the original launch date had slid from January Ps17 to late July, and during that time exchange rates had moved Ps17.35/$ = $0.9798 against Nintendo. Read the short case about Pokemon Go and explain why and how the delay in its release in the market was unfortunate to the firm despite the tremendous success of the product's launch in the market

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