Merton Electronics
Problem Statement Merton Electronics is facing falling margins primarily due to the impact of a rising exchange rate. Merton imports a higher portion of its products from Japan and hence its profits margins are much more sensitive to the value of yen. ... Patricia Merton, president of Merton Electronics has asked her general manager Charles Brown to prepare a brief report on how their company’s current risk is better managed. ... Analysis Merton Electronics imports half the equipment from Japan and some from Taiwanese suppliers. ... Summary It is recommended that Merton Electronics opt for Option -2.