Thread: Yen Story
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Old 11-26-2005   #7 (permalink)
junglegeorge12
Oyagoi
 
Join Date: Jul 2005
Location: Puerto Rico
Posts: 1,228
A higher yen to dollar value increases export volumes, international customers order more quantity. Cost of living in Japan relative to the yen, not the dollar, is what determines how it affects Japanese people. The thing that really concerns me, is not the khv, it is going to show up in the states again too, so you cannot give yourself 'safety' by buying in one country and not another. The thing that has me worried for Japanes exports and koi business is the price of shipping. As fuel prices skyrocket, so will shipping prices, putting the final price of their products out of range of their largest markets or putting them unable to compete with manufacturers located closer.

For me, for Japan to survive it economically, it has to build factories closer to it's larger markets. Otherwise shipping prices will put them out of competition. China is good, but North America is the largest consumer goods market on the planet. So I am encouraging all Japanese businessmen to consider expanding here in the carribean, in PR they will pay no import taxes or duties to the US, it is part of PR's deal for having military bases here. Alot of Japanese equipment manufacturers have already started using PR as a duct into N America. Shipping is the same as from state to state pricewise, no import taxes or customs inspections.

I would be interested in knowing Brian's take on the future exports of Japan and how Japan can improve it's economic position and standard of living. How do you think rising oil and shipping prices will play a role? How can japan strategize to overcome that and remain competitive? China has an edge, having it's own oil resources and other energy techonologies. Unless Japan can build a massive line of shipping vehicles that can travel long distances over water electromagnetically like the trains or some other way. What do you think Brian? What are they saying about all of that in Japan?
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