Since Nike has international business in numerous countries, it closely monitors exchange rate movements. In particular, Nike has major business in Japan and in the United Kingdom. It has even begun to sell its shoes in Eastern European countries. Nike recognizes that it must monitor movements in currencies that were not allowed to fluctuate in the past. It has also recently expanded its business in Latin America, where currencies can be quite volatile.

QUESTIONS:

What specific factors do you think Nike considers when determining how the value of the Japanese yen may change in the near future? Would it consider the same factors when determining how the value of the Czech Republic’s currency (the koruna) may change? Ensure to provide your source.