Today, most Japanese automobile companies have manufacturing plants in the United States. Honda, for example, exports from...

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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.

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3.8 Ratings (642 Votes)

a Plunging in business means going down quickly and Yen is Japanese currency Hence Plunging Yen indicates Yen getting weaker against the dollar For instance in 2015 time of this case 1 dollar has started buying 115 Yen as against 80 Yen in general b When Yen plunged exporting cars from Japan became a highly profitable proposition for Fuji Heavy Industries As stated in See Answer

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