Japan has long led the world in shipbuilding and it has been a profitable enterprise.?
Japan has long led the world in shipbuilding and it has been a profitable enterprise. But President Nixon's measure to protect the American dollar and subsequent re-evaluation of the Japanese yen have been a great concern to Japan's shipbuilders. Most ship building companies have received orders as much as three years in advance and many of these orders have been contracted in U.S. dollars. They will be paid the contracted rate agreed upon before the unexpected change in value of currency. In order to make up the difference, the shipbuilders have asked the Japanese government to subsidize the industry. The shipbuilders also face the possibility of a decrease in future orders due to the increased cost of production. Because of the re-valuation of the yen a six to ten per cent increase in the cost of production will soon be in effect and this will have repercussions on other Japanese industries including toy manufacturing, electronics goods, and various industries designed for export.