Assuming US depreciated domestic currency and Japanese appreciated foreign currency.
1. what will the effect be on 'demand for US dollars"& "demand for domestic investment" - increase or decrease?
2. what will the effect be on 'demand for Japanese Yen"& "demand for foreign investment" - increase or decrease?
3. what will the effect be on 'US exports" to Japan import - increase or decrease?
4. what will the effect be on 'US goods & service in Japanese Market" - Advantage or Disadvantage?
5. what will the effect be on 'US goods & service in US Market" - Advantage or Disadvantage?
6. what will the effect be on 'Japanese goods & service in US Market" - Advantage or Disadvantage?
7. what will the effect be on 'Japanese goods & service in Japanese Market" - Advantage or Disadvantage?
I was preparing a summary of exchange rate effect. However, I was very confused of those elements above. Many thanx in advance