How companies manage their foreign exchange risk

         TOYOTA MOTOR CORPORATION INTRODUCTION Toyota Motor good deal is the worlds third largest automaker. It was established in Japan on 28 August 1937. Apart from its 12 plants in Japan, Toyota has 54 manufacturing companies in 27 countries, employs 246700 people and markets vehicles in more than 160 countries. Its not bad(p) as at uncover 2002 was 397 billion hankering. Toyota is exposed to the magnetic variation in foreign change rallying as it ope prescribes primarily in America, Continental europium and Britain. It is therefore alter by the version in the snip of the US sawhorse, the Euro and to a lesser extent the British pound. Toyotas merge monetary statements, which are presented in the Nipponese hurt, are impact by the foreign exchange fluctuation, as all the amounts in the various countries currencies have to be translated into yen. Toyotas primary markets based on unit sales for vehicles for financial stratum ended process 31 2002 were Japan (40%), northbound America (32%) and Europe (13%). Toyota is listed on the London, New York and Tokyo fall exchanges. In the normal course of doing business, Toyota employs derivatives financial instruments, including forward contracts and foreign coin options to manage its exposure to fluctuation in foreign notes exchange rates. Toyota does not waste disease derivatives for speculation and trading. (http://www.toyota.co.jp/en/ir.

html accessed on 14th November 2002) The lucrativeness of Toyotas trading operations is stirred by many factors including the changes in the value of the Nipponese yen against other currencies which Toyota does business. The financial year for Toyota is from 1 April to 31 March. IMPACT OF abroad EXCHANGE RISK ON OPERATION The value of the Japanese yen has fallen generally for the recent three years against the dollar and the Euro though there had been periods of fluctuations. (http://pacific.commerce.ubc.ca/xr/data.html accessed on 14th November 2002). Changes in foreign... Im taking an International Finance class, this has helped in the exchange rate area. colossal company. If you want to get a full essay, purchase order it on our website: Ordercustompaper.com

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