asked 160k views
3 votes
An increase in the value of the U.S. dollar relative to the Japanese yen would be​ ________ for Japanese owners of U.S. houses who wish to sell those​ houses, and​ ________ for Japanese manufacturers operating factories in the United States that export their products back to Japan.

1 Answer

5 votes

Answer:

good news; bad news

Step-by-step explanation:

US houses are bought in dollars. When those Japanese have sold their properties, the money will be worth more in their home currency (yen) so they would benefit.

Factories operating in the US have to pay input costs in dollar. Products' prices are much based on those dollar costs. If they are converted to yen the price will be higher for Japanese consumers, hurting sales.

answered
User Robert Penner
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7.8k points
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