Toyota's moves to move its factories to Europe are a reaction to volatility. This is because the yen has appreciated against the euro, so it is becoming more and more expensive for Toyota to sell Japanese cars produced on the European market.2. Mitsubishi Motors Corporation2.1 Corporate OverviewMitsubishi Motors Corporation was founded in 1970 by Yataro Iwasaki. The Corporation was headquartered in Tokyo, Japan. The Company is engaged in designing, developing, manufacturing, assembling, purchasing and selling, importing and other transactions related to automobiles and auto parts. 2.2 Transaction Exposure Mitsubishi Japan has entered into a loan agreement with Swiss USB Bank under which Mitsubishi will make a payment of 100 million Swiss francs for principal and interest for one year. Subsequently, the size of the yen/Swiss franc trade suffered from exchange rate uncertainty. Therefore, Mitsubishi did not know how many yen it would need to purchase the right 100 million Swiss francs in a year, whether the yen was devalued against the Swiss franc, and how small or large an amount of yen it would need to withdraw from San Francisco . if predominantly in