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.

Question

Quizplus · Accepted Answer

An increase in the value of the U.S. dollar relative to the Japanese yen means that when Japanese owners of U.S. houses sell those houses, they will receive more yen after converting the dollars from the sale, which is beneficial for them. However, for Japanese manufacturers operating factories in the U.S. and exporting products back to Japan, their products become more expensive in yen terms, potentially reducing their competitiveness in the Japanese market, which is bad news.

An Increase in the Value of the U