1.   An artificially high yen would create downward pressure on domestic prices, which is the last thing the country needs.

2.   A high yen hurts Japanese exporters by eroding their overseas earnings and damages competitiveness by forcing them to raise prices abroad.

3.   A high yen makes Japanese-made goods more expensive abroad.

4.   After an initial jump in domestic orders early in the year, the high yen caused manufacturer to reduce spending as the year progressed.

5.   But until Japanese institutional investors pluck up their courage and buy overseas securities, the high yen will persist, economists say.

6.   Companies are shifting production overseas to exploit cheaper labor costs abroad, to avoid losing money from the high yen and to establish plants closer to foreign markets.

7.   Exports are weakening as manufacturers shift production offshore to counter the high yen and exploit cheaper labor costs abroad.

8.   For NEC, the surge in sales started overseas, an odd place since the high yen was supposed to have crippled Japanese exports by making them too expensive.

9.   Here, too, the high yen plays a role by making imported cars cheaper.

10.   However, with exports badly damaged by the high yen, Japan has been under pressure to break down barriers to more foreign goods.