Case | HBS Case Collection | July 1986 (Revised July 1991)

Nippon-WTI Ltd.

by W. Carl Kester and Glynn Ferguson

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 1986. (Revised July 1991.)