Minimum Wage

The biggest threat for the company can be the currency fluctuation, that means not stability in their profits , so as a result of fluctuation there can be the rising of interest rates and an increase of the company’s income.

Effect of imports and exports: decreasing imports, increasing exports. If the Australian dollar depreciates, Australian exports become cheaper and

- For the foreign producers, when their currency weakens, production becomes cheaper (especially if they have currency reserves in dollars), and their sales go up, since the weaker currency is more attractive to foreign buyers.

dollar to devaluate, which means the deliberate downward adjustment in the exchange rate because it is too high compared to China’s yuan and Germany’s euro. However, the tactics and policies President Trump is trying to introduce are causing it to revaluate or change upward in currency’s value. Investors are still investing in the dollar because they see less translation risk, or the impact of exchange rate changes on a firm’s consolidated financial statements, because Trump’s planned policies have a good chance of increasing the dollar. The high U.S. dollar will cause domestic manufacturing costs to increase causing less product demand from foreign countries. This economic risk, which is the extent to which a firm’s future international earning power is affected by changes in exchange rates, will cause job loss because companies will not be able to pay workers the same with raised

Japan was one of the first Asian countries to have a successful economy. Unlike other economies, Japan gew through high input and efficiency growth. It was clear back then that Japan was certain to catch up, or at least come close to the United State’s economy. Despite their past growth though, they have since slowed down and reach a plateau of growth. It was predicted that they would surpass the United States by 1998, but instead hit its limits. Japan was unique compared to its neighboring countries like its big brother

While, the U.S. and Japanese economies have similar features, there are several difference between the two. They both have large industrialized economies that require a high standard of living, yet, the U.S. economy is twice as large as Japan. Japan is a major foreign foundation of financing for U.S. national debt and seems to remain mentors in the future, as the increasing U.S. public debt requirements and domestic savings remains inadequate. Japan is also a significant source of foreign investment in the United States, and the United States is the origin of much of the foreign investment in Japan. However, due to the 2011 earthquake and tsunami, the political leaders have concluded on reducing the economic stability provided to the United States as Japan struggles to sustain its economy. Although Japan continually exceeds the U.S. in savings, the trade savings is created a deficit in the United States putting the trade partnership at a halt. Furthermore, the restrictions to international trade would limit the nation’s services and goods produced within its territories, and that creates a valuable loss of revenue from the global trade and a considerable decline in trade.

Hogan (2015) studied the relationship between the Japanese yen and to U.S. dollar exchange rate. Over the past two decades, the yen has changed drastically. By 2011, the yen to dollar value was received to be 80 yen to/1 dollar. Hogan (2015) reviewed a simple example of how the U.S. to yen-dollar rates affects the production and selling of goods. In this example, Hogan (2015) took two Japanese automobile manufacturers. Company A in his experiment built its cars in Japan and exported them to the U.S. while company B has a factory in the U.S. and built their cars in the U.S. He found that if it cost company A 1.2 million yen (10,000 U.S. dollars) at a rate of 120 yen/ to 1 dollar and it costs company B 10,000 dollars to make the same model. Both companies sell their cars for 15,000 dollars and both would in return make a 5,000 dollar profit. However this would all change if the value of the yen strengthened. Once the value of yen strengthens it will cost more U.S. dollars to make or purchase a product. So Hogan (2015) altered his experiment and found that if the yen value strengthened and the yen to dollar ratio became 100 yen/ 1 dollar and it still cost company A 1.2 million yen to produce a car it will cost

Japan has been involved in currency manipulation from the early 2000. From 2000 to 2014, Japan 's holdings of foreign exchange reserves increased from $347 billion to $1208 billion, a quadrupled gain of $861 billion. The holdings of foreign assets in Japan 's GPIF also increased to $308.8 billion in 2013, and project to increase to $480 billion in the future (Bergsten 2014). Japan 's trade balance and current account remain suppressed in 2013 due to several factors, such as earthquake and tsunami, which increased demand for imports in anticipation of value-added tax increases that took effect in 2015. This also led to short-run impact of the fall of yen, which increased cost of Japan 's imports. In the upcoming years, the devaluation of yen is expected

The major problem for the export-heavy nation became the strength of the Yen. When the exporters saw a more expensive Yen, they faced more difficulty to compete with domestic manufacturers in other nations. Also, due to extremely low rates of interest in Japan, it experienced massive outflows of capital from retirees and investors looking for yield in other economies such as United States, Europe and Australia.

For any country, international trade will have an effect on its economy. One factors that influences trade in China is inflation. If inflation is high in China, exporting to China will decrease and local businesses may resort to purchasing in other countries. Another factor that will influence trade in China is the impact of national income; if this increases compared to the home country, the current account of the foreign country will decrease, and the real income level will rise and result in demand for imports. Government policies also affect MNC’s when it comes to subsidizing exports and restrictions on import bills. If exports are subsidized, it will make local business bigger competition for companies importing to that foreign country. Restrictions on imports such as imposing of tariffs on imported goods, can reduce the company’s import. Any restrictions on exchange rates will affect the ability to use the revenue that businesses receive in Renminbi. This will cause the new Chinese law to affect doing business in China. Also if China’s government changes its policies on the value added tax

The onset of Super Endaka in 1995 summed up to an already existing situation of global recession (1991), with price pressures, posted production and sales declines. Moreover, trade barriers in Europe prevented Japan's firms to expand and compensate for the US losses, where the price effects of yen appreciation were most severe. This time, the challenge posed by the new exchange rate shift was even harder than the first one.

This business study will define the problems in the United States due to Japanese investments. In the current global economy, the foreign investments relations between the U.S. and Japan have been one sided due to the inter-Asian business models of the Japanese markets. Japan has traditionally been cooperative with the United States in allowing its products to be manufactured and sold in the United States, which has provided some manufacturing jobs in the U.S. This causes problems for the U.S. because they are disadvantaged by one-sided trade agreements that decrease job opportunities for American workers, since the Japanese are increasingly moving their manufacturing plants into Asia. More so, the Japanese government has manipulated its

Weaker Yen sounds like loss of Japan. Actually, it brings a lot of benefits to Japan. There are many effects from weaker Yen.

Like the rest of the world, Japan has in fact been experiencing inflation. The Bank of Japan increased its annual inflation rate to 1.8% from 1.1%. Japan will increase in consumer prices (goods and services) which should lead to higher company profits and wages, and domestic spending in the economy. Japan’s increase is mainly imported and increasing food and energy prices. Japan is an importer of goods and Japanese companies are not benefitting from this inflationary environment.

Increased trade deficit. Trade barriers make imports more expensive, reduce the demand for imports. However, trading partners can also raise prices, international trade. This policy will not solve the problem, if the domestic production of goods without competition or may not be high quality. The country is willing to spend not so much if they fall in exports imports.