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Case
| HBS Case Collection
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1991
(Revised from original 1986 version)
Nippon-WTI Ltd.
by
W. Carl Kester and Glynn Ferguson
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Abstract
A Japanese joint venture between a U.S. parent and a Japanese parent has proposed that 100% of the U.S. parent's product be produced in Japan rather than the 40% currently being manufactured there. This would require the U.S. parent to give up a dollar profit earned on the manufacture of the product in exchange for a yen royalty. The proposal forces the U.S. parent to evaluate its operating exposure to the yen in light of its broader Asian strategy.
Keywords: Joint Ventures;
Currency Exchange Rate;
Profit;
Product;
Production;
Strategy;
Manufacturing Industry;
Asia;
Japan;
United States;
Citation:
Kester, W. Carl, and Glynn Ferguson. "Nippon-WTI Ltd." Harvard Business School Case 287-006, July 1991. (Revised from original July 1986 version.)