What is meant by the term foreign exchange risk and explain and illustrate those strategies that are available to a multi-national enterprise to deal with such risk.

In this paper I intend to introduce the relevant options available to a multi-national enterprise when dealing with foreign exchange risk. I am going to use Toyota Motor Corporation throughout as an example. Toyota is the world's third largest automaker. It was established in Japan on August 28th 1937 and apart from its 12 plants in Japan, has 54 manufacturing companies in 27 countries, employs 246,700 people and markets vehicles in more than 160 countries. (Toyota website, 2004) Toyota is exposed to …

…over all of the proceedings so as to ensure continuity across the company. Bibliography Appleyard, D,R. & Field, A,J. (2001) International Economics, New York, McGraw-Hill Companies Buckley, P. & Casson, M. (1992) Multinational Enterprises in the World Economy, Giddy, I,H. (2001) The Management of Foreign Exchange Risk, New York, NYU Press Hill, C,W,L. (2000) International Business: Competiting in the Global Marketplace, New York, McGraw-Hill Companies Pilbeam, K. (1992) International Finance, Basingstoke, Macmillan Education