Issues with Foreign Currency

Issues with Foreign Currency - countries can significantly...

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Issues with Foreign Currency When comparing Nissan Motor Company in Japan versus Ford Motor Company based in the United States the financial insecurity of the world’s economy has caused the dollar to plummet against the yen. Falling to less than 103.9 yen per dollar overnight from 106 yen per dollar last week, this is a perfect example of the issues faced with foreign currencies (Bradsher & Fackler, 2008). Supply and demand are driven by foreign exchange markets. When Japan wants to exchange yen in order to purchase goods or services the money is traded on the Forex (Bradsher & Fackler, 2008). Importing and exporting between
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Unformatted text preview: countries can significantly impact relative price of goods and services (Bradsher & Fackler, 2008). Imports and exports and the assets and the profits from these trades all affect the currency rates (Bradsher & Fackler, 2008). Typically gains and losses such as foreign currency exchange rates are included when figuring out a businesses net income (Libby, Libby, & Phillips, 2005). The gains and losses can vary greatly depending on the yen to dollar value. This is one of the significant reasons why issues can arise when doing business with foreign companies....
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