Why is the Japanese Yen so strong? What is its implications for anexport-driven economy like Japan? s1160132 Shotaro Takeda
Outline● What is JAPAN● Circulated Money History● The Going Market Rate of Yen● Why the Yen Become Strong● Discuss how Japanese export suffers due to the strong yen● Discuss the problem with domestic spending that has an effect on the strong yen● Deal of Appreciating Yen● References
What is JAPAN● Japan is an island nation in East Asia. Located in the pacific Ocean.● Famous people. Akira Toriyama, Hayao Miyazaki, Haruki Murakami etc.● Famous food. Ramen, udon, beef barbecue, rice wine.
Circulated Money History● The Japanese yen is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro.● Yen was constitution in 1871.● Trace back to Spain and Mexico.
The Going Market Rate of Yen●1945-1949 1 dollars is 360 yen.●1985-1988 1 dollars is 250 yen.●2001-2004 1 dollars is 120 yen.●2011 1 dollars is 77 yen.
Why the Yen Become Strong Include main factor●Deflation as exemplified by commodity pricefactor of the United States and Japan.●Mitigative financial measure by the United Statesand cost of money factor of the United States andJapan.
Discuss how Japanese export suffers due to the strong yen●Strong yen swingeing exercise to export.For example, In the event 1 dollar is 100 Yen. If sold item of 100 dollar become amount ofproceeds is 100 Yen. But 1 dollar is 80 Yen. If sold item of 100 dollarbecome amount of proceeds is 80 Yen.●Become decrease amount of proceeds.
Discuss the problem with domestic spending that has an effect on the strong yen● Japanese company has a lot of export value. But, Feedstock of article for sale base oneself on import. As a result, Become fall in income.
Deal of Appreciating Yen● Accommodation of funds for small and medium company.● Expanse subsidy for eco-car● Accession gas right of foreign country.● Abatement of automobile weight tax.● Aid of agricultural support. etc.