GASB58H3 Lecture : GASB58- Class 8.docx

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raspberrywalrus834

22 Apr 2012

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1911: revolution in china and the collapse of the last imperial dynasty in china; period of warlords, 1919: the paris peace conference and the treaty of versailles. 1919: rising nationalism in east asia: student demonstration in korea (march) and china (may 1919) Social unrest, economic depression, weak party system in japan. The true nature of the league of nations has been revealed. It is nothing but an agency of illicit intercourse between europe and america, and its paramount object is to establish despotism of the white race . The world, after all, is now japan"s enemy. It is the desire of other nations to check japan"s natural development. To japan, therefore, the rest of the world is unnecessary. The unites states, especially, is most obnoxious to us . If the world, with america at its center, stands against japan, japan will be glad to meet it in a suitable manner. The sino-japanese war in the making 1931- 37.

Related Questions

1) Discuss the impact of culture (including corporate culture) on post-World War II Japanese economic growth. How has culture influenced economic policy and institutions in the post-World War II Japanese development model (or what has also been referred to as the Japanese Institutional Model)?

2) Tw approaches to explaining Japanese economic success are dominant in studies of the Japanese Model - one is characterized as political, the other as economic. Explain the difference between the two approaches. What was the Japanese Development strategy? Briefly explain the goal of each of the four policy areas of the Japanese Model.

3) Explain why some countries were particularly vulnerable to the Asian contagion, while others escaped unscathed. Discuss the important factors that help explain Asia's path to economic recovery following the Asian currency crisis.

4) Explain IN GENERAL how economic bubble develops. Japan began a lengthy period of stagnation characterized by falling demand and falling prices, following the bursting of the Japanese economic bubble. Discuss the structural reforms, especially in the banking and corporate sectors, which were designed to restore both household and business confidence. Evaluate the effectiveness of these reforms.

5) Two foreign trade strategies (ISI and EOI) played an important role in Japanese economic success. Explain the goal of each strategy and how each was implemented.

champagneherring852

Please read the passage and answer the questions below.

During the first half of the 2000s, the Japanese yen was relatively weak against the U.S. dollar. This was a boon for Japanâs export-led economy. On January 1, 2008, it took 122 yen to buy one U.S. dollar. For the next four years, the yen strengthened relentlessly against the dollar, hitting a record high of Â¥75.31 to the dollar on October 31, 2011. The reasons for the rise of the yen were complex and had little to do with the strength of the Japanese economy because there has been very little of that in evidence. The weakness of the yen during the early to mid-2000s was due to the so-called carry trade. This financial strategy involved borrowing in Japanese yen, where interest rates were close to zero, and investing the loans in higher-yielding assets, typically U.S. Treasury bills, which carried interest rates 3 to 4 percentage points greater. Investors made profits from the interest rate differential. At its peak, financial institutions had more than a trillion dollars invested in the carry trade. Because the strategy involved selling borrowed yen to purchase dollar-denominated assets, it drove the value of the yen lower. The interest rate differential existed because the Japanese economy was weak, prices were falling, and the Bank of Japan had been lowering interest rates in an attempt to boost growth and get Japan out of a dangerous deflationary cycle. When the global financial crisis hit in 2008 and 2009, the Federal Reserve in the United States responded by injecting liquidity into battered financial markets, effectively lowering U.S. interest rates on U.S. Treasury bonds. As these fell, the interest rate differential between Japanese and U.S. assets narrowed sharply, and the carry trade became unprofitable. Financial institutions unwound their positions, selling dollar-denominated assets, and buying yen to pay back their original loans. The increased demand drove up the value of the yen. For Japanese exporters, the 40 percent increase in the value of the yen against the dollar (and the euro) between early 2008 and 2012 was a painful experience. A strong yen hurts the price competitiveness of Japanese exports and reduces the value of profits earned overseas when translated back into yen. Take Toyota as an example: In February 2012, the company stated that its profit for the year ending March 31, 2012, would be about Â¥200 billion, 51 percent lower than in the prior year. Toyota makes nearly half of the cars it sells globally at its Japanese plants, so it has been particularly hard hit by a rise in the value of the yen. In late 2012, things started to change when the pro-business Liberal Democratic Party won national elections and Shinzo Abe was appointed prime minister. Abe had campaigned on a platform that included taking actions to weaken the value of the yen to help Japanâs exporters. Even before the election, Japanâs central bank had accelerated purchases of government securities, thereby expanding the money supply, and had agreed to a higher inflation target. Under Abeâs leadership, this policy had explicit government support. One consequence of the policy was to reduce the value of the yen against other currencies. Indeed, between October 2012 and December 2013, the yen lost more than 25 percent of its value against the U.S. dollar. The yen was trading at Â¥104 to the U.S. dollar in late December 2013. While this helped Japanâs exporters, the policy was criticized by other major industrial nations as a unilateral action that came dangerously close to precipitating a currency war.

1. Who in Japan benefits from the devaluation of the yen? Who does this hurt in Japan?

2. What does this case teach you about the way foreign exchange markets work?

harlequindolphin819

Assume you are the top HR manager for a large international firm. The head of your companyâs operation in Japan has just resigned to take a job with another firm. You must decide on a replacement as quickly as possible. Look at the four candidates below. List each oneâs strengths and weaknesses and then rank them in order of preferences with a brief explanation of why the deserve each rank. Remember job specific as well as cultural specific factors.

1) Jack Henderson: a senior vice president based in your Chicago headquarters. Jack has a long and distinguished career with your firm, is well regarded by everyone, and plans to retire in three years. He has never worked outside the US but is strongly and visibly lobbying for the job in Japan. Because you and your spouse socialize with Jack and his wife outside of work, you know she doesnât want to move from Chicago.

2) Takeo Takahashi: is the number two manager in your Japanese operation, although he has served in that role for only 3 months. He was born and raised in Japan. After attending college in the US, he returned to Japan and went to work for your firm. Takeo is considered an emerging star in the company but is also relatively young and inexperienced. Your CEO prefers to appoint someone for the Japanese position with at least 15 years of experience and Takeo only has 8. He was being groomed to eventually take over the operation, but the just-departed top executive had been expected to serve until he reached retirement age in another 7 years.

3) Jane Yamaguchi: a Hawaiian born manager currently heading up a major division for your company in the US. She was a dual economics and Asian studies major at the University of Hawaii. For the last several years she has been studying the Japanese market and has become a true expert on that country. She enjoys traveling and spends as much time in Asia as possible. You know she would be very interested in this job if it were offered, although you are concerned that her husband and two high school aged children may not share her enthusiasm about living in Japan. In addition, you worry that if she is not offered a new challenge soon, she might start looking for another position.

4) Jacques Moine: is your most experienced international manager. Originally from France, Jacques has held senior management positions in your firmâs operations in Germany, Spain, Canada, Argentina, and Mexico. Moine appears to be quite satisfied with his current posting in Mexico. Because that operation is both stable and efficient, it likely could be run with someone with less experience.

GASB58H3 Lecture : GASB58- Class 8.docx

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