noname2200 on 12 January 2009
| Pete_Beast said: I never understood how the Yen getting stronger can cause trouble? Can someone explain? |
I might be (probably am) wrong about this, but if your currency gets stronger relative to other countries' money, getting other counteries' money doesn't matter as much. To illustrate:
Situation A; 1 dollar=100 Yen, Japanese company gets 100 dollars from overseas, translates into 10,000 Yen.
Situation B; 1 dollar=80 Yen (Stronger Yen), Japanese company gets 100 dollars from overseas, translates into only 8,000 Yen.
Now multiply that transaction several hundred thousand times, and you're quickly talking about lots of profits being lost.
If I misunderstood, someone please feel free to correct me.
