2006-07-14 19:22:35 · 6 answers · asked by signature lavendar 1 in Business & Finance ➔ Other - Business & Finance
Actually, it's quite high right now. 116 yen to the US $.
Don't compare the individual units, compare what they will buy. A cell phone that costs $100.00 in the US certainly won't sell for 100 yen in Japan.
2006-07-14 19:27:47 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Because there is more yen outstanding in relationship to other currencies. Because supply is so high, price drops, and thus it takes more yen to buy a $. In large part this has been caused by Japan giving money away for free for many years (OK not literally free, but 0% interest might as well be). As another poster stated, in relative terms, $1 worth of yen will essentially buy you $1 worth of goods. Don't be fooled by the large number of currency the $1 is exchanged into.
2006-07-15 02:36:03 · answer #2 · answered by MagicalMke 4 · 0⤊ 0⤋
If you are asking why an individual yen has such little value, the answer seems to be World War II. It was worth 13/15 of an ounce of silver in the late 1800s, but lost its value during and after the war.
2006-07-15 02:40:57 · answer #3 · answered by dWj 1 · 0⤊ 0⤋
the Japanese Islands have limited space , which also limits their growth potential. this increases their need to trade for items
internationally that they cannot manufature or grow for themselves
and this trade (import/export) imbalance means
they are currently importing more than they are exporting
even though importers must pay high tariffs.
the imbalance also devalues their currency.
2006-07-15 02:32:20 · answer #4 · answered by Syberian 5 · 0⤊ 1⤋
hey don't calculate like that for example
in India people are nearly 100,00,00,00
if one earn just $10000 rep year see the difference
we produce more we consume than we produce.
ie (an Indian)
2006-07-15 02:44:03 · answer #5 · answered by TOMMY 3 · 0⤊ 0⤋
its worth as much as their penises
2006-07-15 02:25:40 · answer #6 · answered by Gary J 1 · 0⤊ 1⤋