How companies manage their foreign exchange risk

         TOYOTA MOTOR CORPORATION INTRODUCTION Toyota Motor Corporation is the worlds third base largest automaker. It was established in Japan on 28 lofty 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 capital as at expose 2002 was 397 billion yen. Toyota is exposed to the version in foreign cash exchange as it ope prescribes mainly in the States, Continental europium and Britain. It is therefore alter by the version in the set of the US dollar, the Euro and to a lesser boundary the British pound. Toyotas consolidate monetary statements, which are presented in the Nipponese yen, are affected by the foreign exchange fluctuation, as all the amounts in the various countries currencies have to be translated into yen. Toyotas old markets based on unit sales for vehicles for financial form ended litigate 31 2002 were Japan (40%), Nort h America (32%) and Europe (13%). Toyota is listed on the London, New York and Tokyo stock exchanges. In the normal course of doing business, Toyota employs derivatives financial instruments, including forward contracts and foreign currentness options to manage its exposure to fluctuation in foreign gold exchange rates. Toyota does not wasting disease derivatives for speculation and trading. (http://www.toyota.co.jp/en/ir.

html accessed on 14th November 2002) The profitability of Toyotas trading operations is affected by many factors including the changes in the value of the Nipponese yen against other currencies which Toy ota does business. The financial year for To! yota is from 1 April to 31 March. IMPACT OF FOREIGN EXCHANGE RISK ON cognitive operation The value of the Japanese yen has fallen generally for the other(prenominal) 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. Great company. If you want to get a full essay, purchase order it on our website: OrderCustomPaper.com

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