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In: Economics

In late 2011, you are approached by the HP Inc CFO. He is asking you to...

In late 2011, you are approached by the HP Inc CFO. He is asking you to assist with a negotiation with Canon. HP stands to lose quite a bit of printer profitability with the Yen at 75. He suggests that HP Inc. renegotiate the contract with Canon to be dollar-based.   How would you like to respond? Your response should consider both your expectations of the future relative values of the Yen and Dollar, as well as HP’s exposures and abilities to manage those exposures.

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