Tuesday, September 14, 2010
Strong Yen Fuels Rise in Japanese Takeovers
Japanese companies are known to be strong, disciplined and patriotic. The strong yen has allowed Japanese companies to have greater purchasing power overseas. Within this year Japan has spent about 27 Billion USD in buying companies outside their country. Examples of this trend would be, "The purchases pale in prestige compared with deals like Sony’s takeover of Columbia Pictures, or Mitsubishi’s purchase of the Rockefeller Center." What does this say about the US economy? that it does not have enough presence to keep their own companies domestically? Will the yen, in the near future feel a change in this trend as more of their money goes overseas?
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1 comment:
I agree that this is a very smart move for Japan to make instead of trying to devalue the Yen. Especially given the fact that they have not yet decided on how to re-energize their own economy. Foreign investments even if this volatile international economy could help their economic growth, allow them to transition away from manufacturing and exports to service and high-end technology and with time make their exports more attractive again.
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