Although he yen's drop in value has economists worried about the possibility of the Asian recession affecting the U.S. economy's health, American's need not worry about such events.
Americans, usually concerned more about the price of consumer goods than the statistics on exports, receive the benefits of a stronger dollar a result.
With more buying power, Americans can buy Japanese products, such as cars, for a lower price than before.
In Hawai`i, too, there are advantages.
Tourists, instead of buying high-end goods and souvenirs, will opt for less expensive goods to bring home. Gucci and Louis Vuitton might lose out, but that means more sales for lower-end retailers.
In addition, currency deviations tend to be self-correcting. as the yen loss value, exports rise, creating a larger demand for yen.
It is that larger demand that leads to a stronger currency, eliminating any need for concern.
Americans, usually concerned more about the price of consumer goods than the statistics on exports, receive the benefits of a stronger dollar a result.
With more buying power, Americans can buy Japanese products, such as cars, for a lower price than before.
In Hawai`i, too, there are advantages.
Tourists, instead of buying high-end goods and souvenirs, will opt for less expensive goods to bring home. Gucci and Louis Vuitton might lose out, but that means more sales for lower-end retailers.
In addition, currency deviations tend to be self-correcting. as the yen loss value, exports rise, creating a larger demand for yen.
It is that larger demand that leads to a stronger currency, eliminating any need for concern.
No comments:
Post a Comment