Japan's Automakers Face "Endaka"

"Endaka," or the continuing escalation in the value of the Yen against the dollar has curtailed Japanese exports to the point that the major Japanese automakers are beginning to feel the squeeze on profits. What has been called "endaka" can be traced to the 1985 Plaza Accord when the G7 countries agreed that the dollar was overvalued and that other currencies should be strengthened against the dollar, with a target of 100 to 100 Yen equaling one dollar. The strategy that the Japanese automakers must adopt is to band together and present a united front, while it determines just exactly how important its current markets are. This is essential because the industry is being pressured by too many external forces. During this period of "banding together" the big four could enter into strategic discu

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Category: Economics - J