Toyota Motor Corporation (ADR) (TM), Honda Motor Co Ltd (ADR) (HMC): We Have A Winner

Japan’s number five exporter is also its largest electronics company, thanks in large part to a component business that includes semiconductor manufacturing. I’m sure many of you might be surprised that the honor goes to Panasonic, not Sony Corporation (ADR) (NYSE:SNE). Panasonic also includes the popular brands Sanyo and Technics. Under its various divisions, this company manufactures numerous products such as phones, televisions, appliances, cameras, and even power tools.

Chart courtesy of The Motley Fool

While Sony Corporation (ADR) (NYSE:SNE) does come in as the number six exporter out of Japan, it does approximately 50% of its manufacturing abroad. So, like Honda, Sony Corporation (ADR) (NYSE:SNE) could be a safer long-term investment when the negative effects of the yen’s devaluation begin to manifest.

Conclusion

Knowing how currency markets work can make you some easy money. They play a large role in the success or failure of companies that do business abroad. By learning the simple rules that govern the floating exchange market and paying attention to global monetary shifts, it is possible to find very profitable investments.

The well known effects and now highly predictable monetary policies of the Bank of Japan are designed to achieve certain goals, namely higher exports, which they believe will later stimulate the overall economy. This has already led to increased exports in the first quarter, giving credence to this plan. Look for these policies to continue and expand as needed to meet these long-term goals.

The article Highly Predictable Profits Set to Continue originally appeared on Fool.com and is written by James Catlin.

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