Slide 24 of
32
Slides developed by Jeff Madura, with
additions and enhancements by Tim Richardson
Economic Exposure
uExposure
of domestic firms
–impacted by foreign competition and financial markets
uExposure
of MNCs
–face
exposure on domestic and foreign soils
–Jan-May 1993:13% appreciation of Japanese yen
against $US
Fmany US firms increase US
market share
FJapanese firms often
priced out of the US market