Is it good news for us consumers

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Reference no: EM131305209

1. If the exchange rate between the yen and the dollar changes from ¥80 = $1 to ¥90 = $1, is this good news for Sony? Is it good news for U.S. consumers? Is it good news for U.S. firms that export to Japan? Is it good news for Japanese consumers?

2. According to an article on Sony's forecast of its profits during 2010, "Sony has factored in a 40 billion yen hit from currency rates alone." Was Sony expecting a decline in the value of the yen relative to other currencies or an increase? Briefly explain.

Reference no: EM131305209

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