Toyota Case Study Summary

Chapter 1

1. Toyota Motor Corporation

1.1 Corporate Overview

Toyota Motor Corporation is one of the bigger automobile industries in the world, located in Toyota, Aichi, Japan. This corporation was founded in 1937 by the Toyoda family. Toyota has a subsidiary that has known as Toyota Australia. Toyota Corporation itself have been doing their business in almost all around the world with 50 manufacturing firms abroad in 26 countries and regions.

1.2 Transaction exposure

Transaction exposure is the risk that occurs as a result of the currency structure of liabilities and deviated expanses from the currency structure on the sale of assets. Transaction exposure are extremely related to the result of operations of non domestic sales of Toyota

Steps that were taken by Toyota to move their factories to Europe are a reaction to the volatility. This is because the Yen rose against the euro, so that it becomes increasingly more expensive for Toyota in selling their Japanese cars that were manufactured in the European market.

2. Mitsubishi Motors Corporation

2.1 Corporate Overview

Mitsubishi Motors Corporation has been established since 1970 by Yataro Iwasaki. The Corporation was headquarters in Tokyo, Japan. The Corporation is engaged in the design, development, manufacture, assembly, purchase and sale, import and other transactions that related to the cars and parts of the car.

2.2 Transaction exposure

Mitsubishi Japan has entered into a loan contract with Swiss bank USB in which Mitsubishi need to make a payment of SF 100 million for principal and interest for one year. Then, the extent of yen/ Swiss franc exchange experienced uncertainty in the exchange rate. Therefore, Mitsubishi did not know how much yen that they should be required to buy the right SF 100 million in one year, if the yen was depreciated against the Swiss franc and how small or large amount of yen that will be required to retire from SF if predominantly in