Reading the April issue of Motortrend, I came across something that made me think a bit. It was mentioned that Toyota is exporting many of it's models (Camry, Tundra, Sequoia, etc) FROM the US to other regions such as Korea, the Middle East, Europe, etc... Their reasoning?
"...because of the rising value of the yen."
So why export from America then? What does the Yen have to do with their choice of export location? Surely it can't be cheaper to ship to Korea from the US than it would be from Japan? Of course not. They do this because (from all I can figure, knowing what I do of supply/demand/trade in general) America is now their lowest cost point of production.
Discuss.
"...because of the rising value of the yen."
So why export from America then? What does the Yen have to do with their choice of export location? Surely it can't be cheaper to ship to Korea from the US than it would be from Japan? Of course not. They do this because (from all I can figure, knowing what I do of supply/demand/trade in general) America is now their lowest cost point of production.
Discuss.