lazyrider on 29 October 2008
| papflesje said: Here's something an economic baboon like me doesn't understand: If they have such a backlash from the yen, can't they just have some sort of factories (or deals with factories) all across the most important territories? A factory in Mexico or whatever other country is rather cheap in the American zone, a factory in Eastern Europe, and one in Asia... Shouldn't that offset the possible losses from the Yen? If they already produce and sell from the region's currency, isn't the drop-off from another currency then eliminated? |
Pap: I could be wrong on this but I believe it is an accounting thing. The have their books in Yen and as such bring back everything to the Yen in their accounts. Doesn't matter if the factory is in Belgium, it matters that it is sold in EUR and has to show up as revenue in their books as Yen. But could be wrong, I'm no expert in this...
Elaine: I will never understand people
Jerry: They're the worst.
