karleestiefel734 karleestiefel734
  • 18-11-2020
  • Business
contestada

How will the depreciation of the Japanese Yen vis-à-vis the USD impact FDI from U.S. into Japan?

Respuesta :

jepessoa
jepessoa jepessoa
  • 19-11-2020

Answer:

Generally, when a currency depreciates, that results in higher foreign direct investment. I.e. if the currency of any country depreciates, investing in that country becomes cheaper for foreign companies, e.g. land, equipment or existing facilities are worth less if the investors brings an appreciated foreign currency.

In this specific case, if the yen depreciates, US foreign direct investment in Japan should increase.

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