I need at least a 200 word response to whether or not I agree with this answer to this question:
Who are the winners and who are the losers if a currency, let's say the yen, and weakens?
Who are the winners and who are the losers if a currency, let's say the yen, and strengthens?
Please include in your list exporters, importers, consumers, tourists, international students among other stakeholders.
To make sure that your answer is clear, write one section on the first question and one section on the second question.
Answer:
If the Japanese currency, yen, weakens compared to let us say the United States currency, dollar, than American importers and consumers would purchase more Japanese products because it would be cheaper for them as the dollar is worth more. This could help Japanese companies with foreign trade to the U.S. because the amount of exports will increase for the Japanese company. The opposite is true for the U.S. based companies as they will experience a decline in exports as Japanese will import less U.S. products as it is too expensive. American tourist may find it the best time to visit Japan as travel expenses for hotel and transportation would be cheaper as well. The U.S. will see a decline in Japan tourist as it would be too expensive for them to travel to the states.
If the yen were to strengthen compared to the dollar than Japanese importers and consumers would purchase more U.S. products as it is cheaper for them as the yen is worth more. This could help U.S. companies with foreign trade to Japan because the amount of exports will increase for the U.S. companies. The opposite is true for Japan based companies as they will experience a decline in exports as the U.S. will import less Japanese products as it is too expensive. Japanese tourists may find it cheaper to visit the U.S. as travel expenses would be cheaper. Japan would see a decline in American tourist as it would be too expensive for them to travel to Japan.