ipad pro 11 inch price philippines,Why is the Japanese Yen so high when traded to a dollar?

Table of Contents

iPad Air price Philippines

It depends on the time frame but certainly the Japanese yen has appreciated relative to the dollar since World War II; most of that appreciation occurred (or rather was realized) after 1971 as the fixed exchange rate was breaking down.

,There are many ways to measure (or guess at) whether a currency is relatively cheap or expensive.

The Economist magazine uses a somewhat tongue in cheek measure called the u201cBig Macu201d index; with McDonaldu2019s outlet now being all over the world it simply compares the prices of a Big Mac in Buenos Aires, London, Tokyo, etc.

,What I remember is being in Japan in 1964 when a beer at a decent restaurant was Y120, or about $0.

33 u2014 a bargain for me as an English teacher but maybe u201cnormalu201d for a low-pay Japanese office worker.

But productivity was advancing rapidly in Japan as factories introduced machinery and learned from Europe and the US.

They could employ the latest techniques because the manufacturing sector had been bombed to smithereens during World War II.

So while the US stuck with open hearth blast furnaces to make steel ingots that then then had to be rolled thinner to make bars and sheets, the Japanese decided to build their steel mills with the new system from Austria u2014 continuous casting.

As manufacturing efficiency grew, and a surge of invention swept Japan US manufacturing companies were u201cupendedu201d by Japanese products: Kodak was wiped out by Nikon at the high end and Canon at the lower end.

Toyota was making cars that were small u2014 but gas sippers and defect free.

Xerox made copiers that were far more expensive (and less reliable) than Ricoh and the like.

,When I joined US Treasury as its u201cJapan handu201d in 1972 Japanese imports were already flooding the US.

At the same time, Japan was not particularly fair to the US (or to its own consumers).

It designed rules that kept formal tariffs low but made inspections and imports of manufactures difficult u2014 not just for the US but for Europe too.

It put quotas on imports of apples (favoring northern Japan over Washington state), and bananas (favoring Okinawa Prefecture over the Philippines).

That force urban consumers to pay 2u20133 times what they should have if they could import fruit freely.

In my view this was political America shooting economic America: to make sure Japan remained anti-communist we designed a 1945 post-war constitution that favored conservative agricultural districts over u201cleftistu201d(i.

e.

progressive) urban districts.

,But I would also blame American manufacturers.

When I was in Treasury and urged them to improve their car quality and also make smaller sedans they just laughed; nu201cJapan canu2019t really compete,u201d they said.

Even when we allowed the dollar to sink dramatically in 1975 a Tokyo church friend who represented a US firm said that he would not try to increase imports and sales in Japan but just keep the dollar price the same (thus raising the price in Japanese yen) because it would look like he was surpassing his sales targets; u201cIu2019ll just spend more time playing golf because the managers at the head office in New York wonu2019t notice the difference.

Japan was scooping up the US market while US businessmen had a monopoly on stupidity.

,To sum: Japan worked hard to improve production quality, automate, and increase exports.

Many US firms were arrogant to the max u2014 so the likes of Xerox and Kodak got the ax.

And the dollar went through a long slide.

In recent years US firms have become more competitive by becoming more inventive.

Japanese firms have been good at improving the known (cars, backhoes, copiers) but are hard pressed to match the US and Europe in the u201cnewu201d (microchip designs, Ipads, fast fashion, etc.

) So, u201cthe rise of the yenu201d has stalled.