61. A weaker yen makes Japanese bonds less attractive because it decreases their returns when converted into a stronger currency, such as the dollar. 62. A weaker yen makes Japanese exports cheaper, and therefore more competitive, on overseas markets. 63. A weaker yen makes Japanese goods more affordable overseas. 64. All manufacturers have significantly shifted production to other countries in recent years, however, because the strong yen has made their products more expensive overseas. 65. But a stronger yen also makes Japanese exports more expensive abroad and could forestall any economic rebound. 66. But already, as the falling yen makes Japanese products more competitive, Japanese exports are rising again. 67. But the weaker yen makes progress easier. 68. Elsewhere in the Pacific, the higher yen has made Japanese industrial goods more costly for Taiwanese manufacturers, as well. 69. Even so, the weakening yen makes imports into Japan, such as oil, more expensive in yen terms. 70. First, the weak yen makes Japanese products cheaper than those of neighboring countries, further depressing their already poor exports. |