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Increasing sales for exporters

The foreign consumers evaluate the imports in comparison to the domestic products from function or design viewpoints, and their final judges become dependent on the price competitiveness. The weaker Yen makes Japanese exporters possible to discount to some extent in the foreign markets and this factor results in making Japanese products more competitive. In this way, the Yen depreciation is getting about the sales increase for the exporters and it follows the profit surge thereafter.

Improvement in the job markets

Increasing produce in the foreign markets needs more employment and wage increasing domestically, because even the biggest automaker domestically manufactures 80% of all products including foreign made. The Yen depreciation pushes up the cost of materials imports, but the domestic economic environment would improve.B

Rising stocks

The Yen depreciation brings about the sales increase for the Japanese exporters and it follows that the stock prices of exporters are going up. In addition, the foreign investors feel cheaper and they would take actions toward bargain hunting because the Yen depreciation is equivalent to the stronger forex currencies. As a result, the stocks value is rising and the Japanese companies would be made vital. These processes might take the Yen value to higher stage. In short, the Japanese stocks turn out rising in the course of Yen appreciation.

Imports and competitiveness

In the phase of the Yen appreciation, the importers can purchase at the lower costs and it domestically makes the retailing prices going down as well. Briefly speaking, the Japanese importers can offer the more competitive prices when the Yen value is appreciating while the exporters more competitive when the Yen is depreciating.

Seeing the history of the forex movements, the Yen appreciation keeps for a long time. Some Japanese exporters shift their factories to foreign countries to avoid further Yen appreciation, which makes them stopping any more loss arising from the forex movement but impossible to take profit.

 

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