If the Japanese devalue their yen, it not only affects Japan, but the US as well. First, it brings down imports for the Japanese because everything outside of Japan is much more expensive. The US imports will rise because importing say rice will be cheaper than importing rice from China because the value is lower in Japan. Therefore Japan will be exporting more, because for other countries, it is cheaper for them to import Japanese goods since the value went down in Japan. This then leads to Jobs. Jobs in Japan will be going up because they will be exporting more goods, which will mean they will be producing more. Their wages will be lower, but there will be more work. For the US, jobs will be decreasing because the US will be doing less exporting. They will be receiving more goods from Japan because of the value of the yen lowering, and they therefore have no reason to export out to them, because they will be paying less of what they would previously because of the declined value. The US would be losing money. This therefore takes away jobs because the US will not be producing as many goods as they would if they were exporting. The GDP in Japan will go up, because they will be producing more because of their rise of exporting. The goods be created that are essential for Japan to export will be exported at an even higher rate because of the lessened value, which creates a much higher demand from other countries and a higher supply from them. For the US it is the opposite.
The Rise (and Fall) of the Japanese Yen
Lawrence Cifarelli III, Nazanin Ershad, Natthima Sonsoem, Anyesha Mahaptra
University of New Haven
This Case study provides an insight to the fluctuations experienced in the currency of Japan, Yen from the late 1990’s to recent years. Japan follows the floating currency monetary policy due to which there is no measures taken on to control the fluctuations. Japan experienced magnificent growth through the 60's, 70's, and 80's leading into the…
Due to the eruption of the sub-prime financial crisis, Japanese banks were greatly affected by the capital losses from their equity shareholdings in the Capital Markets as stock prices declined sharply. Japanese banks tried reducing the amount of cross-holdings of shares on banks' balance sheets; however, they were still exposed to the volatility caused by equity shareholdings.
On December 2008, the Japanese government passed a law which allowed capital injections. On March 2009…
the fluctuation in the yen-dollar exchange rate. Therefore, they are considering two basic hedging alternatives to reduce exchange-rate risk on their yen cash flows. The first alternative was to sell yen for dollars at a predetermined price in the future using a forward contract. The second alternative was to purchase a yen put option allowing them to…
In 1989 Japan was widely viewed as an economic super-power. After three decades of robust economic growth it had risen to become the world’s second-largest economy. Japanese companies seemed to be obliterating entire American industries, from automobiles and semiconductors to earthmoving equipment and consumer electronics. Japanese companies…
Integration of the world economy into one market.
Prof. Sergio Castello
Lecture notes: By Stephanie Gapud
• Trade Barriers Fall down
Global Manufacturing/ Production •Lower cost through Product Standardization •Increase Ownership advantage •Lowered the cost /Unit •Economies of Scale •Lowered the cost to satisfy the demands of the Global Homogeneous Consumer •Location Advantage
– – – – – – – Collapse of Berlin wall Opening of China to the World…
Aspen’s current hedging strategy hurts them because they don’t hedge their total exposure (after cancelling out the natural hedging exposures) appropriately: the Belgian Franc that accounts for 54% of their exposure is not hedged at all, whereas the Japanese Yen and the UK pound are “overhedged”, and then Aspen pays more and not efficiently.
Aspen’s accounting choice is to recognize sales revenue arising from license fees at the time of sale (upon shipment of the software) because contracts are not cancellable…
Sony Corporation – Restructuring Continues, Problems Remain
Sony in crisis again:
1. Obstacles: don’t question its business.
2. Reorganize the programs (financial performance and competitiveness of the company)
3. The attempts failed because of the silo culture.
4. Reducing business categories and products models.
5. Another reorganize of the program in 2009 (reduction in the employee and manufacturing sites) make all Sony parts to work together and move to innovation.
6. Did not give attention…
Table of contents
Executive Summary 3
Introduction to LVMH 4
SWOT Analysis 7
Company Analysis 8
Porter 5 Forces Model 13
Industry Analysis 14
Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise…
Table of contents
Types of Mergers 3
Types of Acquisitions 4
Motives behind M&A 5
Problems faced in Mergers and Acquisitions 6
Problems faced in Cross Border Mergers and Acquisitions 7
Sony's Acquisition of Columbia Pictures 8
Columbia Pictures 9
Analysis: Star Framework 9
Fig: Choice of Entry Mode 15
Failure of the Acquisition 15
Reasons for the Failure 16
Merger between Daimler-Benz and Chrysler Corporation 18
Chrysler Corporation 18
Managerial Economics 2010 Answers to All Tutorial Questions
Topic 1 : What is managerial economics
Questions from Chapter 1 of the Text (McTaggart, Findlay & Parkin)
Review Question 1 (pp. 4) List some examples of scarcity in Australia today. An example of scarcity at the economy-wide level would be people with lower incomes being forced to choose between food and petrol due to high prices for both. An example of scarcity at an individual level would be a person unable to afford both…