Arrange the following steps in the correct order to illustrate the impact of currency appreciation on trade dynamics: A) Japanese exports become more expensive for foreign buyers, B) The Yen appreciates against other currencies, C) Japanese consumers prefer cheaper imports, D) Net exports decrease, affecting the balance of payments.

When the Yen appreciates against other currencies, it means that the value of the Yen has increased compared to other money. As a result, Japanese exports become more expensive for foreign buyers, which can lead to a decrease in demand for these goods. When Japanese exports decline, Japanese consumers may start to prefer cheaper imports from other countries since they can buy more with their stronger currency. This shift can lead to a decrease in net exports, which negatively affects the balance of payments. For example, if a Japanese car that used to cost $20,000 for an American buyer now costs $22,000 due to the stronger Yen, many Americans might choose to buy a car from another country instead.