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The average Japanese car has between 20-40% Japanese content. This is because a significant number of the Japanese cars marketed in the US were also

The average Japanese car has between 20-40% Japanese content. This is because a significant number of the Japanese cars marketed in the US were also produced at plants in the US. How does reducing the amount of Japanese content affect the foreign exchange rate exposure of the Japanese car makers? How does it affect the operating exposure of GM to movements in the yen/dollar exchange rate? Explain.

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