Welcome to the world of sony – unless the yen keeps rising

1. Why did the contraction of the U.S. and Japanese economies and the rise in the value of the yen hurt Sony’s export from Japan?

2. In what other ways has the strong yen affected Sony’s bottom line? What would be the effect of the weak yen?

3. Given the instability in the currency market, why do you think it is important for Sony to manufacture more products in the United State and Europe and to also buy more from suppliers in other countries in Asia?

4. What are the major forces that affected the Japanese yen prior to the global financial crisis in the fourth quarter of 2008? What has had greatest impact on the yen since then, and where do you forecast the future value of the yen?