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Weaker	
  yen	
  of	
  advantages	
  	
  
and	
  disadvantages	
	
  
s1200247	
  
	
  
What	
  is	
  Weaker	
  yen?(1)	
	
  
	
  
 Weaker	
  yen	
  is	
  that	
  of	
  the	
  rela;ve	
  value	
  of	
  
other	
  currency	
  yen,	
  the	
  number	
  of	
  units	
  of	
  
another	
  currency	
  that	
  can	
  be	
  exchanged	
  in	
  
yen	
  is	
  what	
  a	
  rela;vely	
  small	
  state.
What	
  is	
  Weaker	
  yen?(2)	
	
  
It	
  becomes	
  weaker	
  yen	
  is	
  90%	
  disadvantages,	
  
benefits	
  not	
  only	
  the	
  remaining	
  10%.	
  
To	
  price	
  increases,	
  salary	
  is	
  because	
  life	
  is	
  
severely	
  unchanged.	
  In	
  other	
  words,	
  considering	
  
the	
  households	
  of	
  all	
  households,	
  weaker	
  yen	
  is	
  
that	
  there	
  is	
  only	
  a	
  disadvantage.	
  
Weaker	
  yen	
  of	
  advantages(1)	
  	
	
  
	
  Weaker	
  yen	
  of	
  advantages	
  it	
  is	
  easy	
  to	
  
sell	
  things	
  abroad,	
  also	
  profits	
  of	
  
exporters	
  will	
  increase	
  because	
  you	
  
can	
  redeem	
  more	
  in	
  the	
  case	
  of	
  
changing	
  foreign	
  currency	
  into	
  yen.	
  
Weaker	
  yen	
  of	
  advantages	
  (2)	
	
  
	
  In	
  addi;on,	
  people	
  who	
  are	
  holding	
  
the	
  foreign	
  currency	
  in	
  overseas	
  
deposits	
  and	
  FX,	
  the	
  investor	
  of	
  profit	
  
increases	
  about	
  become	
  weaker	
  yen.
Weaker	
  yen	
  of	
  disadvantages	
Weaker	
  yen	
  of	
  disadvantages	
  go	
  up	
  the	
  price	
  of	
  
various	
  things	
  needed	
  for	
  life.	
  	
  
This	
  problem	
  is	
  due	
  to	
  the	
  fact	
  that	
  raising	
  the	
  
price	
  by	
  up	
  the	
  price	
  of	
  imported	
  goods	
  from	
  
abroad.
Major	
  problem(1)	
	
  	
  
A	
  further	
  major	
  problem	
  is	
  that	
  the	
  export	
  is	
  not	
  
extended.	
  
	
  Japan‘s	
  economy	
  has	
  been	
  sluggish	
  because	
  of	
  
defla;on	
  and	
  the	
  yen,	
  and	
  was	
  scheduled	
  to	
  
resolve	
  all	
  if	
  the	
  infla;on	
  yen	
  deprecia;on	
  
problem.
Major	
  problem(2)	
	
  	
  
If	
  as	
  expected	
  had	
  increased	
  significantly	
  benefit	
  
by	
  now.	
  But	
  exports	
  hardly	
  increased.	
  
•  Contrary	
  to	
  the	
  expecta;on	
  that	
  a	
  virtuous	
  
cycle	
  happens	
  for	
  Japan,	
  vicious	
  cycle	
  is	
  
happening.
Two	
  problems	
  to	
  be	
  solved	
1.  Japan	
  domes;c	
  and	
  foreign	
  price	
  difference	
  
Country	
  was	
  forced	
  to	
  take	
  a	
  policy	
  of	
  lowering	
  
prices	
  in	
  order	
  to	
  maintain	
  produc;on	
  levels.	
  
Therefore,	
  defla;onary	
  cons;tu;on,	
  such	
  as	
  the	
  
downturn	
  in	
  corporate	
  earnings	
  and	
  wages,	
  it	
  
was	
  supposed	
  to	
  be	
  followed	
  over	
  a	
  long	
  period	
  
of	
  ;me.
Two	
  problems	
  to	
  be	
  solved	
2.	
  Semiconductor-­‐related	
  industry	
  
In	
  developed	
  countries	
  companies	
  own	
  country,	
  
stop	
  the	
  produc;on	
  of	
  such	
  goods,	
  produc;on	
  
consignment	
  to	
  Taiwan	
  and	
  South	
  Korean	
  
companies,	
  has	
  produced	
  and	
  transferred	
  a	
  
factory	
  in	
  Asia.	
  	
  
This	
  problem	
  is	
  significantly	
  affected	
  in	
  the	
  
semiconductor	
  industry.	
  
Resolu;on	
  draY	
Now	
  that	
  has	
  become	
  weak	
  yen,	
  Japanese	
  
companies	
  need	
  efforts	
  to	
  rebuild	
  the	
  export	
  
price.	
  
If	
  it	
  is	
  possible	
  the	
  country	
  to	
  convert	
  the	
  
industrial	
  structure	
  in	
  the	
  field	
  capable	
  of	
  
maintaining	
  price	
  control	
  the	
  resources,	
  even	
  if	
  
the	
  yen	
  to	
  raise	
  the	
  price	
  in	
  the	
  export	
  market,	
  it	
  
is	
  possible	
  to	
  regain	
  profitability	
  of	
  the	
  
company,	
  and	
  growth	
  poten;al	
  of	
  the	
  economy.
Bibliography	
•  h[p://jp.wsj.com/ar;cles/
SB10001424127887323366004578413670545882026	
  
•  h[p://www.fujitsu.com/jp/group/fri/column/opinion/
201204/2012-­‐4-­‐5.html	
  
•  h[p://www.円安.net/enyasu-­‐meri[o-­‐demeri[o.html	
  
•  h[p://www.newsweekjapan.jp/column/ikeda/2014/08/
post-­‐875.php	
  
•  h[p://www.toha-­‐search.com/keizai/enyasu.htm	
  

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Homework

  • 1. Weaker  yen  of  advantages     and  disadvantages   s1200247    
  • 2. What  is  Weaker  yen?(1)      Weaker  yen  is  that  of  the  rela;ve  value  of   other  currency  yen,  the  number  of  units  of   another  currency  that  can  be  exchanged  in   yen  is  what  a  rela;vely  small  state.
  • 3. What  is  Weaker  yen?(2)   It  becomes  weaker  yen  is  90%  disadvantages,   benefits  not  only  the  remaining  10%.   To  price  increases,  salary  is  because  life  is   severely  unchanged.  In  other  words,  considering   the  households  of  all  households,  weaker  yen  is   that  there  is  only  a  disadvantage.  
  • 4. Weaker  yen  of  advantages(1)      Weaker  yen  of  advantages  it  is  easy  to   sell  things  abroad,  also  profits  of   exporters  will  increase  because  you   can  redeem  more  in  the  case  of   changing  foreign  currency  into  yen.  
  • 5. Weaker  yen  of  advantages  (2)    In  addi;on,  people  who  are  holding   the  foreign  currency  in  overseas   deposits  and  FX,  the  investor  of  profit   increases  about  become  weaker  yen.
  • 6. Weaker  yen  of  disadvantages Weaker  yen  of  disadvantages  go  up  the  price  of   various  things  needed  for  life.     This  problem  is  due  to  the  fact  that  raising  the   price  by  up  the  price  of  imported  goods  from   abroad.
  • 7. Major  problem(1)     A  further  major  problem  is  that  the  export  is  not   extended.    Japan‘s  economy  has  been  sluggish  because  of   defla;on  and  the  yen,  and  was  scheduled  to   resolve  all  if  the  infla;on  yen  deprecia;on   problem.
  • 8. Major  problem(2)     If  as  expected  had  increased  significantly  benefit   by  now.  But  exports  hardly  increased.   •  Contrary  to  the  expecta;on  that  a  virtuous   cycle  happens  for  Japan,  vicious  cycle  is   happening.
  • 9. Two  problems  to  be  solved 1.  Japan  domes;c  and  foreign  price  difference   Country  was  forced  to  take  a  policy  of  lowering   prices  in  order  to  maintain  produc;on  levels.   Therefore,  defla;onary  cons;tu;on,  such  as  the   downturn  in  corporate  earnings  and  wages,  it   was  supposed  to  be  followed  over  a  long  period   of  ;me.
  • 10. Two  problems  to  be  solved 2.  Semiconductor-­‐related  industry   In  developed  countries  companies  own  country,   stop  the  produc;on  of  such  goods,  produc;on   consignment  to  Taiwan  and  South  Korean   companies,  has  produced  and  transferred  a   factory  in  Asia.     This  problem  is  significantly  affected  in  the   semiconductor  industry.  
  • 11. Resolu;on  draY Now  that  has  become  weak  yen,  Japanese   companies  need  efforts  to  rebuild  the  export   price.   If  it  is  possible  the  country  to  convert  the   industrial  structure  in  the  field  capable  of   maintaining  price  control  the  resources,  even  if   the  yen  to  raise  the  price  in  the  export  market,  it   is  possible  to  regain  profitability  of  the   company,  and  growth  poten;al  of  the  economy.
  • 12. Bibliography •  h[p://jp.wsj.com/ar;cles/ SB10001424127887323366004578413670545882026   •  h[p://www.fujitsu.com/jp/group/fri/column/opinion/ 201204/2012-­‐4-­‐5.html   •  h[p://www.円安.net/enyasu-­‐meri[o-­‐demeri[o.html   •  h[p://www.newsweekjapan.jp/column/ikeda/2014/08/ post-­‐875.php   •  h[p://www.toha-­‐search.com/keizai/enyasu.htm