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

User Jilly
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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.

User Shu Rahman
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