Toyota's moves to relocate its factories to Europe are a response to volatility. This is because the yen has risen against the euro, so it is becoming more and more expensive for Toyota to sell its Japanese-made cars in the European market.2. Mitsubishi Motors Corporation2.1 Company OverviewMitsubishi Motors Corporation was established since 1970 by Yataro Iwasaki. The company was headquartered in Tokyo, Japan. The Company is engaged in the design, development, manufacturing, assembly, purchase and sale, import and other transactions related to cars and their parts. 2.2 Transaction Exposure Mitsubishi Japan entered into a loan agreement with Swiss bank USB under which Mitsubishi is to make a payment of 100 million Swiss francs for principal and interest for one year. Then, the scale of the yen/Swiss franc exchange experienced uncertainty in the exchange rate. Therefore, Mitsubishi did not know how much yen they would need to purchase the 100 million Swiss francs in a year, if the yen depreciated against the Swiss franc, nor how small or large amount of yen would be needed to purchase the 100 million Swiss francs in one year. remove from SF. if mainly in