Topics: United States dollar, Subprime mortgage crisis, Currency Pages: 2 (495 words) Published: May 5, 2013
I believe that it is important for Sony to manufacture more products in the United States, Europe and from suppliers in Asia because Sony needs to remain a globally diversified corporation. The Yen stability against the US dollar has had a negative impact on the financial stability of Sony. When Sony translated US dollars and Euro financial statements into Yen, the net assets and earnings ended up being worth less in Yen which in turn dropped Sony’s financial results. Sony needs to work on spreading more marketing throughout Asia, Europe and the United States.”As long as Sony is invoicing its exports in dollars to its customers worldwide, it needs to match the dollar revenue with dollar expenses through investing more in the United States or in other countries in Asia”(Daniels, Radenbaugh & Sullivan,2011). Sony has to be cautious and watch the currency rates of its competitors as well to ensure it remains competitive in the marketplace. The global financial crisis of 2008 is a major ongoing financial crisis, the worst of its kind since the Great Depression. It became prominently visible in September, 2008 with the failure, merger or conservatorship of several large United States-based financial firms. The underlying causes leading to the crisis had been reported in business journals for many months before September, with commentary about the financial stability of leading U.S. and European investment banks, insurance firms and mortgage banks consequent to the sub-prime mortgage crisis. Beginning with failures of large financial institutions in the U.S., it rapidly evolved into a global crisis resulting in a number of European bank failures and declines in various stock indexes, and significant reductions in the market-value of equities and commodities worldwide. The crisis has led to a liquidity problem and the de-leveraging of financial institutions especially in the United States and Europe, which further accelerated the liquidity crisis. World political...
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