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Japan, Toyota, & Yen
| Question | Answer |
|---|---|
| What is the purpose of a forward contract? | They lock in exchange rates for future transactions |
| What is the difference between a call option and a put option? | A call option grants the right to buy a specific currency at a certain exchange rate, whereas a put option grants the right to sell a particular currency at a specified exchange rate |
| Roughly what percent of Toyota's revenue comes from inside the country? | ~40% |
| What’s the benefit of having a strong Yen? | Cheaper imports, ADD MORE HERE AND ON SLIDES? |
| What are some of the benefits of having a weak Yen? | More profitable exports, more global investors in the carry trade (is that considered a benefit? ADD MORE) |
| How much of Japan’s GDP was international trade in 2022? | ~47% |