Toyota manufactures most of the vehicles it sells in the United Kingdom in Japan. The base platform for the Toyota Tundra truck line is ¥1,650,000. The spot rate of the Japanese yen against the British pound has recently moved from ¥197/£ to ¥190/£. How does this change the price of the Tundra to Toyota's British subsidiary in British pounds? Assumptions Original spot rate, Japanese yen/British pound New spot rate, Japanese yen/British pound Export price of Toyota Tunda truck, Japanese yen Values 197.00 190.00 1,650,000

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