The strength of the Japanese Yen
There are not a lot of currencies out there that are safer than the Japanese Yen. Since World War II, it has continued to strengthen and solidify itself as one of the top currencies of the world.
There is a lot of confidence that comes with doing business in Japan, one of the most important factors to consider is the stability of the government and it’s currency. As the yen gets stronger against the US dollar it helps not just your company, but it also helps decrease the trade deficit of the United States.
Right now the Yen is trading between 95 and 100 to a US Dollar. That means that the purchasing power of a Japanese consumer is stronger and they can buy goods at a discount versus an American consumer. In essence, your company’s goods are 29% cheaper to the Japanese today than they were just two years ago (June 18, 2007 – 123.87). That was without you giving up any margin, revenue or even changing your product.
Japan is the second largest individual country by GDP. Yes, they are still bigger than China with less than 10% of the population. Talk about individual buying power.
When you are thinking of market expansion, think Japan!
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Before you try to do business in Japan, know this: You don't even know what you don't know. Japanese consumers are hungry for products, but cutting through the Japanese red tape takes experience and manpower in Japan.
Tokyo Trade Company can help you get your products to Japan. We are an experienced partnership between Japanese and American businessmen. We can help you license your product, get government approval and market it throughout Japan.
