For multinational companies, currency exposure is not soothing that can be ignored. Due to use of more than one currency, multinational companies must engage in conversion of the currencies. However, the foreign exchange rate is not static. It keeps of fluctuating. Therefore, the exchange rate that a company is exposed to today is different from that of yesterday and that that will be used tomorrow. This creates uncertainty and may lead to loss of value. In this case, Toyota is incurring losses due to deviations that occur between the Euro and Yen. The assignment is going to look at the mitigating factors for this loss.