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Japanese Automakers face Endaka
Essay specific features
Written by:
Delma L
Date added:
October 29, 2013
Level:
University
Grade:
A
No of pages / words:
4 / 1029
Was viewed:
1546 times
Rating of current essay:
Essay content:
Compared to the competitors the Japanese manufactures created a cost advantage per car of $1,500 to $2,000 due to labour differences, technical efficiencies and not least the lower exchange value of the yen.
During the early ‘80s the dollar had strengthened tremendously against the yen due to high US interest rates (and thereby big demand for dollars) and inflow of foreign capital...
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A strong dollar led to increases in the US trade deficit. The “Japanese invasion” by the auto manufactures was tough competition for the US producers, which also showed in the growing trade deficit.
The finance ministers of the five leading industrialised countries; Great Britain, France, West Germany, Japan and the US coordinated an intervention of their respective foreign exchange markets to “correct the imbalance in the market”...
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