Discussion

I agree with the US property developers’ decision to borrow in yen to fund their projects. Low loan interest rates in Joan imply that the United States property developers will not have to pay hefty interest rates on loans acquired. Some people may contradict the decision, arguing that the decision is not viable since the developers will borrow more cash since the yen is not as valuable as the United States dollar. Even though the ideology is correct, the difference in loan interest and the yen-dollar exchange rate makes the decision viable. Higher interest rates in a particular jurisdiction imply that the region’s value is relatively high compared to other areas. Under the explained situation, the United States property developers will use lesser dollars to cover their expenses.