Question

Who are the winners and who are the losers if a currency, let's say the yen, weakens?

Who are the winners and who are the losers if a currency, let's say the yen, strengthens?

Please include in your list exporters, importers, consumers, tourists, international students among other stakeholders.

Answer 1

• Yen Strengthens

Yen Strengthening will result in worse exports as the goods will become costlier for other counties because of worse exchange rate. Hence, exporters are Losers.

Yen Strengthening will make imports cheaper as the goods will become cheaper for purchase from other counties because of better exchange rate. Hence, importers are winner.

Yen Strengthening will result in decrease in international students & tourist flow as the people from other counties would have to shell more amount because of worse exchange rate. Hence, international students & tourist flow are losers.

Yen Strengthening will decrease the cost of imports and the same will be beneficial to the consumer. For example, buying foreign goods will be more cheaper. Hence, consumers are winner.

• Weaker Yen

A weaker Yen will result in better exports as the goods will become cheaper for other counties because of better exchange rate. Hence, exporters are winners.

A weaker Yen will make imports expensive as the goods will become costlier for purchase from other counties because of worse exchange rate. Hence, importers are Loser.

A weaker Yen will result in increase in international students & tourist flow as the people from other counties would have to shell lesser amount because of better exchange rate. Hence, international students & tourist flow are winners.

A weaker Yen will increase the cost of imports and the same is borne by the consumer. For example, buying foreign goods will be more expensive. Hence, consumers are Loser.