Is the weakening Japanese yen helping the Japanese economy to revive?

s1180117Seigo Maki

Contents1. What is “yen”?2. What is “dollar”?3. Relation between yen and dollar4. State of Japanese economy5. What is the weak yen?6. Advantage of the weakening yen7. disadvantage of the weakening yen8. Effect to the export-import business9. Conclusion

10. Reference

What is “yen”?

● Yen is the official currency of japan.● the third most traded currency in the foreign

exchange market.● Yen is legal tender.

What is “Dollar”?● Dollar is official currency of several countries.● Green area is that use a dollar currency● Yellowish green area is that use the USA dollar● Red area is that formerly used a dollar currency

Relation between yen and dollar

● In modern society, money comes involved in the trade of goods and services.

● International sales are no exception, finacial transactions are being carried out.

● Trading of the dollar and the yen traded according to the exchange rate

State of Japanese economy

● Today, Japan is said to recession.● Fortunately, also is headed to the booming

economy.● Exchange rate has veen stable around

＄100.

What is the weak yen?

● The weakening yen is that relative value of the yen is lower than the state rate of past.

● It’s the reverse state is strong yen.● It is expected to ve weaker yen in the future.

Advantage of the weakening yen

● Easy to profit if buying foreign currency by foreign products.

● Deflationary pressure is relieved.

disadvantage of the weakening yen

● Expect that inflation come out.● The price of brand-name products and travel

overseas up.

Effect to the export-import business

● Become the state in favor of exportation.● Become the state in worse of inportation.

Conclusion

● There are advantages and disadvantages to the weaker yen

● Unconditionally, can not say which is a good or Bad

● Personally, I hope the yen is strong because of lower the prices of computer ewuipment.

Reference

● http://www.nber.org/chapters/c8537.pdf● http://www.toha-search.com/keizai/enyasu.

htm● http://en.wikipedia.org/wiki/Japanese_yen● http://en.wikipedia.

org/wiki/United_States_dollar