In 2013, Japanese automakers found that their vehicles became more affordable for consumers worldwide. Why? The exchange value of the yen was falling. Consider the case of Toyota Motor Corporation. During 2012-2013, the yen steadily fell against the U.S. dollar as Shinzo Abe, Japan's prime minister, advocated for the decline to improve his automakers' competitiveness in global markets. In 2012, the dollar bought fewer than 80 yen, whereas in 2013, it bought about 100 yen. When Toyota sold a Camry in the United States for $30,000 in 2012, those dollars were converted into about 2.4 million yen ($30,000 80¥ 3 5 2,400,0000¥). In 2013, Toyota received about 3 million yen from such a sale ($30,000 100¥ 3 5 3,000,000¥). This amounted to a 25 percent increase in the number of yen received. That helps explain why Toyota, the world's top-selling automaker, more than doubled its profit during 2012-2013. According to analysts at Morgan Stanley, Toyota receives roughly $2,000 more per vehicle when the yen depreciates from 78 to 100 yen per dollar.
The currency slide gave Toyota and other Japanese automakers a financial gain on every car that they could use to reduce prices, boost ads, and improve products, all helping boost U.S. auto sales as the economy strengthened from the Great Recession of 2007-2009.
In 2013, Toyota exported nearly twice as many cars from Japan as Honda Motor Company and Nissan Motor Company and benefitted more than its domestic rivals from the yen's depreciation. However, Toyota officials acknowledged that the currency windfall was temporary, and said it would continue to increase productivity, decrease costs, and improve product quality to increase sales to lessen its vulnerability to currency fluctuations.

What do you think? What would happen to Toyota’s profits if the exchange value of the yen appreciated? Why?