International Economics Assignment Example | Topics and Well Written Essays - 750 words - 1

International Economics - Assignment Example The expansion of businesses in the country will lead to growth of the economy through building of industries and infrastructure. Creation of industries and construction of infrastructure will result in the creation of job opportunities to the citizens of that country.Therefore, improving their living standards and the economy (BalinÃŒÆ'o, TomaÃŒ s and Cottarelli, pp. 45-50). The yen, on the other hand, is weaker compared to U.S dollar. The situation may pose different effects on the economy of Japan. The funding cost of government will be high in the country. Since flows from outside the country often go into local government bonds, the flow will higher yield, therefore, raising money at a higher rate in the market. The little currency will trigger an increase in taxes, which might cause inflation hence lowering value of the economy. The import rates will be high, therefore, discouraging growth of local industries. On the other hand, a weaker currency enables a country to increase its competitive advantage internationally. Since the currency is weak, goods from the country will be in high demand hence increase sales of local industries thereby improving the economy (Nelson, E, and Buckland, pp. 71-75). According to the report, U.S job growth has increased from 214,000 to 230,000. The increase in employment in the U.S is because of currency growth. The currency increases in value, employment increase in the country. The increase in employment opportunities leads to growth of the economy due to increasing in income of employees. In addition, the increase in employment may be attributable to the expansion of businesses in the country. Since the industries are expanding, it translates to an improvement in the country’s economy and development of people living standards. The currency improves as economy of the state improves, as investors are attracted to investing in the country. More investors in the country will mean more