What happens when the dollar decreses compared to the Japanese Yen?
The value of the dollar compared to other countries currencies are based on how much one dollar can buy compared to other currencies. But a weak dollar is not nearly as bad as the media portrays it as. The value of the dollar to the world is just like the housing market either its good for sellers or buyers never both. So as our dollar gets weaker it becomes cheaper to produce stuff such as manufacturing or R&D. This is good for exports b/c if the dollor goes down by .0005% to the Yen if we sell them something like corn we get .0005% extra profit. A weak dollor is bad for importers b/c when sony sells the PS3 for 600 dollars our weaker dollar will cause a decrease in potential Yen they would get. Since our dollar is weak companys like samsung are looking to places like the US and say HEY! if i set up a R&D plant in the US we will get more bang for the yuan or whatever they use in Korea. Ireland economy is slowing down b/c their currency is so high the cost of business is not worth the
