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Home/Business & Economics/Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon.

Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon.

Moonn reflects on the impact of the exchange rate changes between the U.S. dollar and the Japanese yen on Japanese automakers, and I agree that this issue deserves particular attention as exchange rates substantially affect multiple economic sectors.

Due to the stimulating policies of the Japanese government, the Japanese yen is constantly appreciated in relation to the U.S. dollar. According to Thorbecke, during the Eurozone Crisis and the Global Financial Crisis, “capital inflows and other factors caused the Japanese yen to appreciate by more than 45 percent against the dollar between June 2007 and September 2012.”

This tendency led to the squeeze of profit margins as exporters had to lower export prices in order to remain competitive. Thus, the representatives of multiple industries, including Japanese automakers, were forced to reduce their volumes of exports.

That is why the surging Japanese yen and changing exchange rates create multiple challenges for automakers. To be precise, its products become too expensive in the foreign market, especially when companies heavily rely on the homeland’s factories and suppliers. This situation leads to the dominance of foreign companies in the international market.

However, Japanese automobile companies exported lots of cars in the past even if a considerable currency risk was presented. That is why they are currently forced to move their production to other countries. All in all, it is possible to say that Japanese automakers are impacted by the exchange rate changes – when the Japanese yen is surging, they have fewer opportunities for cost-efficient exporting.

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Academic.Tips. (2023) 'Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon'. 14 March.

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Academic.Tips. (2023, March 14). Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon. https://academic.tips/question/celestila-moonn-a-umb-intern-at-schoolstreet-inc-opens-the-wall-street-journal-and-finds-that-in-japan-the-capital-markets-surged-recently-benefiting-from-prime-minister-shinzo-abe-and-the-bank-o/

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Academic.Tips. 2023. "Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon." March 14, 2023. https://academic.tips/question/celestila-moonn-a-umb-intern-at-schoolstreet-inc-opens-the-wall-street-journal-and-finds-that-in-japan-the-capital-markets-surged-recently-benefiting-from-prime-minister-shinzo-abe-and-the-bank-o/.

1. Academic.Tips. "Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon." March 14, 2023. https://academic.tips/question/celestila-moonn-a-umb-intern-at-schoolstreet-inc-opens-the-wall-street-journal-and-finds-that-in-japan-the-capital-markets-surged-recently-benefiting-from-prime-minister-shinzo-abe-and-the-bank-o/.


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Academic.Tips. "Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon." March 14, 2023. https://academic.tips/question/celestila-moonn-a-umb-intern-at-schoolstreet-inc-opens-the-wall-street-journal-and-finds-that-in-japan-the-capital-markets-surged-recently-benefiting-from-prime-minister-shinzo-abe-and-the-bank-o/.

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"Celestila Moonn, a UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan, the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering, in response to these policies, whether the Japanese yen would appreciate or depreciate relative to the U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets,” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen are necessarily good or bad for Japanese automakers. Briefly discuss if you agree with Moon." Academic.Tips, 14 Mar. 2023, academic.tips/question/celestila-moonn-a-umb-intern-at-schoolstreet-inc-opens-the-wall-street-journal-and-finds-that-in-japan-the-capital-markets-surged-recently-benefiting-from-prime-minister-shinzo-abe-and-the-bank-o/.

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After completing the Derivatives Securities Markets reading, Moonn was not sure whether she fully understood the attributes of different types of derivatives. To clear the concepts, she sought help from a tutor. In response to Moonn’s question regarding futures and forward contracts, the tutor stated the following: Unlike futures contracts, forward contracts are marked to market daily and a clearinghouse backs the buyer's and seller's position in a forward contract. Briefly discuss if you disagree with the tutor.
In response to a question from one of her fellow students in the Global Financial Markets class, Moon tells the following regarding Real Estate Markets: Real estate values derive from the interaction of three different sectors in the economy, and the capital market sectors serve to allocate financial resources among households and firms. Also, in general, the single largest asset category in the net worth portfolios of households is housing. However, her fellow student disagrees with Moonn’s statements. Briefly discuss if you agree with her fellow student.
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