Falling Hard Currency Into Japanese Electronics Giant Pills? – Japanese Companies, Toshiba – Network

Has been disclosed recently, after storms in early February have a large loss of Panasonic,
Sony Hitachi and other Japanese electronics giant eight relations and is actively through various means, to persuade the Japanese government level to promote the continued depreciation of the yen, reducing the loss of electronic giants. It is understood that appreciation of the yen since last year, the global market decline, as many Japanese electronics giant, the bane of loss.

However, after South Korean media reported that South Korean electronics giant
LG Nam Yong, vice president of electronic shareholder meeting in warning: “LG is less affected by the depreciation won with some of the world financial crisis. If the exchange rate advantage disappear by the end of this year, the competitiveness of Japanese companies may be more than us, this is worrying. “

Not difficult to see, the exchange rate in the current economic environment has become the Japanese and Korean electronics giant game of leverage. However, whether Korean companies continue to enjoy the won depreciation of good, and the yen will depreciate in accordance with the expected large number of companies, all inconclusive. However, as Japan’s economy one of the two pillar industries, the Japanese government apparently will not sit idly by eight e-giant despite large losses.

There are precedents devaluation losses ‘s Investigation revealed that the Japanese electronics giant to reduce losses through depreciation of the yen and even increase revenue in overseas markets, the mode of operation, early precedents.

Early as the end of 2000, the yen fell trend presents a rare unilateral posture. The end of 2001, the Tokyo foreign exchange market, the yen fell to 132.04 against the dollar. Only about a year, depreciation of the yen is not unusual to 15.8%. Since 2001, the yen continues to decline, down more than a month, 6.5%. For this move, the year’s “Japanese Economic News” has specific editorial commended the Japanese government the right decision, adding that “the yen exchange rate fell to promote exports to many export enterprises increase revenue.”

Electronics industry in recent years, the Japanese economy, the share occupied by the proportion increased gradually. Especially Sony, Panasonic, Hitachi, Mitsubishi Electric, represented by the Japanese electronics brand, after several decades of development has become a truly global market leader. The outside of Japan every year on the market access benefits, far more than domestic sales. Therefore, the performance and profitability of these enterprises are often subject to the direct impact of the yen exchange rate fluctuations, once the lower yen will quickly improve the performance of enterprises in overseas markets. On the contrary, the yen strengthened so that corporate profits will direct fast “evaporation.”

Reporter was informed that nine Japanese electronics giant’s global expansion 20 years ago back in full swing, the electronic products in Japan has infiltrated the world of all angles. A domestic

Home Appliances Person in charge of enterprises admitted to the African can see Matsushita, Sony billboard. In fact, the Japanese enterprises in the major countries and regions around the world are located production plants, supporting a special management team and sales network, Japanese companies and very large corporate structure.

However, the internationalization of Japanese companies that are forced out entirely. As more small domestic market and through the joint development of several giant is close to saturation, and only go out actively looking for profit opportunities in overseas markets. Especially China, India, represented by the emerging developing countries, owned by Japanese electronics giant’s products and technology advantages in the local market is sufficient to promote the survival and development.

It is because of international architecture and layout, resulting in the Japanese electronics giant in the financial crisis, the sales and operating profit experienced an unprecedented “Waterloo.” Also, because all countries through the exchange rate means to boost their economies, and improving export earnings, to stimulate consumer demand. So this time when the global economic crisis hit, the Japanese electronics giant For the eight means of reversing the current through the exchange rate losses, it is somewhat difficult.

Yen depreciation is expected to toss

Recently, the Japanese government report released in March, as the Government continues to pessimistic about the domestic economy, that economic trends are still far away from the bottom, and will continue to face downside risks to the economy, and hinted that would like to see the current weakness of the Day element.