Back in the 1980’s a small U.S. company signed a long term agreement with a Japanese
manufacturer to purchase a brand of adhesive that was much cheaper than could be obtained
in the U.S. The Japanese negotiating team was adamant that they were to be paid in Japanese
yen. The American company, eager to lock in this cheap supply of this particular adhesive,
agreed. This meant that the U.S. company would now assume any risk in currency fluctuation
for the Japanese yen.