Various factors are responsible for the constant fluctuations of foreign currency. From government intervention to interest rates, currencies such as the U.S. Dollar and the Japanese Yen, have experienced a lot of activity over the past decade.
             Companies, such as Nissan Motors, are faced with decisions about their pricing and production strategies that are relative to current exchange rates. In the case of a weak Japanese economy, Nissan had a choice between keeping prices the same and earning more profits, or lowering them to pick up market share.
             My recommendation is to keep prices where they are to earn more profits. Simple supply and demand tactics explain that high price will lead to high demand since consumers always want what they can't have. I personally do not find that capturing market share is more important that remaining profitable.
             A number of domestic and international problems led to a weakening of the yen in 1989. A stock scandal arose that included many of Japan's top political and business leaders, the Tiananmen Square incident occurred in China, the reunification of East and West Germany began, and an overconfidence in the U.S. government to manage the economy all contributed greatly. Inflation and interest rates also became an issue in 1990 after a debate between the Ministry of Finance and the Bank of Tokyo over what the interest-rate policy should be. Consequently, the stock market declined, as well as the exchange rate, and made investors doubt the Japanese government's ability to manage their economy.
             In 1987, a huge outflow of Japanese capital caused their surplus to decrease, which is equal to their excess of exports over imports. Price increases on things such as land and buildings made Japanese investors realize a better return outside of Japan. In addition, interest rates in the United States were high,
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