How the Changes of Foreign Exchange Affect the Financial Risks of Multinational Corporations -- The Case is Toyota's Financial Crisis Caused by Foreign Exchange in 2008

This study explores the impact of the changes of exchange rate on the financial risks of multinational corporations, using the financial crisis suffered by Toyota in 2008 due to exchange rate fluctuations as a case study. The main purpose of this study is to analyse the specific impact of exchange rate changes on the risk of multinational corporations from multiple perspectives. By comparing data from Toyota and four other multinational corporations, we use regression analysis to identify and evaluate the relationship between exchange rate changes and multinational corporation risk. The study not only reviewed previous research by financial and economic scholars, but also analysed and reflected on them to find the connection between theory and practice. Through this method, we expect to gain a detailed understanding of the types of risks that businesses may face under different exchange rate changes and evaluate management strategies for these risks. The conclusion of this article will help deepen our understanding of the challenges and strategies that multinational corporations face in responding to exchange rate changes in a globalized economic environment, thereby providing practical guidance and strategic recommendations for financial risk management. In addition, the research findings may also reveal how companies enhance their financial stability and ability to sustain growth through effective risk management under different economic and market conditions.