| HBS Case Collection
(Revised from original 1986 version)
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;
Kester, W. Carl, and Glynn Ferguson. "Nippon-WTI Ltd." Harvard Business School Case 287-006, July 1991. (Revised from original July 1986 version.)