Effect of Exchange Rate on International Trade
Effects of Exchange Rate on International TradeToday I’d like to talk about the effects of exchange rate on trade balance in Japan:Viewpoints: the appreciation of JPY against USD leads to two opposite effects: firstly, the appreciation of JPY results in lower cost of imported raw materials for manufacturing which aims to export; however, in comparison, the appreciation of JPY eliminates the exports due to decreased oversea price for exports. It is noticed that JPY ascending apparently in February 2016, and the Current Accountn.s.a (Feb) of Japan in February, which is released as the indicator of trade balance on 08/04/2016, shows significant increases from 0.521T to 2.435T. Consequently, the increased trade balance shows that the import is more sensitive to the appreciation of JPY than export at this period, which reflects the raw materials of manufacturing in Japan is import-dependent.Please note: the copyrights of this article is formally published.
Effects of Exchange Rate on International Trade
Today I’d like to talk about the effects of exchange rate on trade balance in Japan:
Viewpoints: the appreciation of JPY against USD leads to two opposite effects: firstly, the appreciation of JPY results in lower cost of imported raw materials for manufacturing which aims to export; however, in comparison, the appreciation of JPY eliminates the exports due to decreased oversea price for exports.
It is noticed that JPY ascends apparently in February 2016, and the Current Accountn.s.a (Feb) of Japan in February, which is released as the indicator of trade balance on 08/04/2016, shows significant increases from 0.521T to 2.435T. Consequently, the increased trade balance shows that the import is more sensitive to the appreciation of JPY than export at this period, which reflects the raw materials of manufacturing in Japan is import-dependent.
Please note: the copyrights of this article is formally published. Effects of Exchange Rate on International Trade
Today I’d like to talk about the effects of exchange rate on trade balance in Japan:
Viewpoints: the appreciation of JPY against USD leads to two opposite effects on trade balance: firstly, the appreciation of JPY results in lower cost of imported raw materials for manufacturing which aims to export and beneficial to export as well; however, in comparison, the appreciation of JPY eliminates the exports due to decreased oversea price for exports.It is noticed that JPY ascends apparently in February 2016, and the Current Accountn.s.a (Feb) of Japan in February, which is released as the indicator of trade balance on 08/04/2016, shows significant increases from 0.521T to 2.435T. Consequently, the increased trade balance shows that the import is more sensitive to the appreciation of JPY than export at this period, which reflects the raw materials of manufacturing in Japan is import-dependent. Please note: the copyrights of this article is formally published.
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