weakening japanese yen

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Do you think the weakening Japanese yen is helping the Japanese economy to revive? What seems to be the problem? What is your own personal opinion on the issue about how Japanese economy can bounce back? S1200114 Hiroaki Kato

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Page 1: Weakening japanese yen

Do you think the weakening Japanese yen is helping the Japanese economy to revive? What seems to be the problem? What is your own personal opinion on the issue about how Japanese economy can bounce back?

S1200114 Hiroaki Kato

Page 2: Weakening japanese yen

(1) What is the weakening Japanese yen?   The weakening Japanese yen is more cheaper toward any other

foreign country's the market price.

  When, Japanese yen become weakening yen, relation export market gain good advantage. on the other hand, relation import market suffer a loss.

  For example, If you want to buy car which price is 30000$, when the Japanese yen is 80yen toward a one dollar, you will get the car when you prepare two million and four hundred thousand yen. you gain 6 hundred thousand yen.

Page 3: Weakening japanese yen

(2)the weakening Japanese yen is helping the Japanese economy to revive?   Do you like travel? When I think it that go to foreign country for travel,

price of travel is the most important thing.

  I recommend to travel when the weakening Japanese yen because I accounted example in first slide which the contents is advantage of weakening Japanese yen.

  On the other hand, When strong Japanese yen, you should not go to foreign country. you will be loss much money.

Page 4: Weakening japanese yen

(3)What seems to be the problem and how Japanese economy can bounce back?   (How Japanese economy can bounce back)

  you must need invite foreign people. If many foreign people come to Japan, Japanese economy can bounce back.

  Because perhaps, many foreign people some of the Japanese articles.

  So, If you invite foreign people to japan, Japanese economy might be able to bounce back.

Page 5: Weakening japanese yen

(3)What seems to be the problem and how Japanese economy can bounce back?   (What seems to be the problem)

  If Japanese yen become weakening Japanese yen, We might be find it very difficult to import something.

  other country get easy materials because they are very cheap and good quality.

  But Japan can't get easy cheap materials even if they need to my country(Japan).

Page 6: Weakening japanese yen

(4) What does weak JP yen mean in the world market?   First, I can't think of one fundamental argument that would support the

case for a stronger yen.

  Second, Japan has every incentive to keep intervening.

  Remember, this is a country attempting to weaken its currency, not save it from a death spiral of weakness.

  Given that fact, unilateral currency market intervention by Japan works in their favor in several ways

Page 7: Weakening japanese yen

(4) What does weak JP yen mean in the world market?   It softens the currency burden for its all-important exporters.

  And it requires Japan to print more and more yen, ultimately easing monetary policy even further. Indeed, a move needed in Japan's fight against another round of deflation.

So what do they do with all of the freshly printed yen?

  They sell it and buy U.S. dollars. That means they stockpile currency reserves ... an area commonly perceived to be a gauge of a country's financial wealth and stability.

  Perhaps even more favorable: It's a politically-positive move. For a country that's had six prime ministers in the past five years — nearly seven in the wake of last week's elections — stepping up to the plate to weaken the yen is a political win.

Page 8: Weakening japanese yen

(5) how Japanese export might be improving due to weak yen, but what does it mean for fuel imports or import of raw materials into Japan?

 Japanese exports aren’t as strong as you might think, despite the sharp drop in the yen’s value over the past year,

 showing how a “hollowing-out” of the industrial base has made it hard to kick-start growth through a weaker currency.

Page 9: Weakening japanese yen

(5) how Japanese export might be improving due to weak yen, but what does it mean for fuel imports or import of raw materials into Japan?

 Aggressive monetary easing by the Bank of Japan 8301.TO-1.76% over the past year has lead to a sharp decline in the yen against its major counterparts. This in turn has increased the value of exports, which jumped 15.3% in December from the same month a year earlier.

Page 10: Weakening japanese yen

(6) How is Toyota doing in the market currently?   Toyota Motot Corp.outdid it self with its latest quarterly earnings

results-literally.

  The world's biggest auto maker said Friday it earned a net profit of \562.2 billion in the three months

  through June. It was the biggest profit ever by a Japanese non-financial firm in a single quarter.

Page 11: Weakening japanese yen

(6) How is Toyota doing in the market currently?   Breaking the company's own record set in 2007.according to Nomura

Securities Co.

  It should be noted however, that such records only go back to 2003,

  until which Japanese companies listed on the Tokyo Stock Exchange werenÅft required to disclose quarterly financial results.

Page 12: Weakening japanese yen

(7) Reference material   How is Toyota doing in the market currently?Å®http://blogs.wsj.com/

japanrealtime/tag/weak-yen/

http://blogs.wsj.com/japanrealtime/2014/02/04/japans-hollowing-out-means-weaker-yen-not-helping-much/

  http://online.wsj.com/article/BT-CO-20140129-702202.html