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Dollar vs Yen - College Paper

Dollar vs Yen

DOLLAR VS. YEN

summary: This is a 2 page paper that analyzes the various tools and techniques of gauging the value of the dollar against the yen for Ford company. It uses 5 sources in MLA format.

(1)briefly comment on whether Ford should worry about a strong dollar

Ford in the face of the strong dollar should worry about how it would accommodate its company strategies against the weak yen. This is imperative for the kind of profitability it desires to yield from Japanese markets for its products.

(2) Issues and methods of measurements:

When dealing with international markets, corporations need to be careful of the exchange rates and the factors that affect it. For Ford, ...

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systems remains the same which weakens the Yen further.

4. Increase in supply of yen against the dollar means it would reduce in price thereby increasing Japan deflation. [1]

In the face of the above Yen position, a multinational company could use several tools to forecast its future. They are as follows:

1. PPP or purchasing power parity which measures the value of the dollar and yen by comparing the prices of same commodities in different countries. If the price of the same commodity were found to be expensive or cheaper then the degree of valuation of the dollar against the yen will be evident.

2. Real exchange rates measurements would allow the producers to gauge what is the rate of capacity utilization of a country by analyzing the relationship of exchange rate with productivity growth rate. The comparison would provide the strength of the dollar rate and the yen rate. [2]

3. Big Mac Index works like the PPP where the major currency denominator is measured ...

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Dollar vs Yen. (2015, July 16). Retrieved December 23, 2024, from http://www.essayworld.com/essays/Dollar-vs-Yen/104782

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PAPER DETAILS

Added: 7/16/2015 03:24:11 AM
Category: Economics
Type: Premium Paper
Words: 732
Pages: 3

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