Today, most Japanese automobile companies havemanufacturing plants in the United States. Honda, for example,exports from Japan only 21 percent of the cars it sells in theUnited States. Fuji Heavy Industries whose main car brand isSuburu, is an exception in still producing most of its cars inJapan. An article in the Wall Street Journal observed that for FujiHeavy Industries, “the plunging ye has turned a problem – ashortage of production in the US – into an unexpectedboon.”
- What does the article mean by a “plungingyen”?
- Why would a plunging yen be a boon for Fuji HeavyIndustries?
- Briefly explain whether a plunging yen would help orhurt Honda.
