The given statement " While Japanese Yen sharply appreciated against US$, Subaru's competitors in Japan established significant manufacturing facilities in the North american market " is TRUE.
Explanation:
Subaru preferred to export Japanese production rather than build manufacturing facilities in the US such as Honda and Toyota, as it helped Subaru prosper in sales while the other Honda and Toyota saw their sales decline as Yen depreciated against the U.S. dollar. Consequently, it was a prudent decision of the firm to create a manufacturing plant in the region.
A yen rise versus the Dollar have been the currency risks associated with either the export policy of Subaru. Strong Yen is about Subaru Cars ' low sales.
The related advantages are decreased car sales thanks to the Yen's US dollar decline. In 2014 and 2015, Subaru boosted sales and profits as Yen depreciated over the two last years against the US dollar. It's not wise to expand the U.S. potential because this will bring down sales as Honda and Toyota have seen.
The techniques used by the firm to avoid unfavourable exchange rate adjustments could involve manufacturing set-up in the United States because Yen would still remain weak. When Yen appreciates the dollar, the sale of cars from the Japanese territories would decrease.
