Class Notes (906,591)
CA (538,617)
UTSG (45,723)
ECO (1,632)
ECO100Y1 (439)
Jack Carr (32)
Lecture

Comparison: US and Japan

4 Pages
126 Views

Department
Economics
Course Code
ECO100Y1
Professor
Jack Carr

This preview shows page 1. Sign up to view the full 4 pages of the document.
Feb 3, 2009
Reading 9.1
1980-US and Japan had a balanced trade
1980-84-Large trade deficit from Japan to US, due to Japan being a protectionist country
-US import from Japan was 3 times as large as US exports to Japan in 1985, exports had to grow by more
than 3 times as fast as imports if Us wanted to keep the trade deficit from widening
-Aftíõôô:v[oÆZvPÁlv]vPUo}Á}Áv}(P}ÁZ(íõõíU]uov}
again
-The Long term credit Bank of Japan in 1993, said the imbalance was due to price-inelastic high-tech.
products, 4.5B of the imbalance was from disc players, video cameras, machine tools that were not
produced in the US
-Because Japan has a triangular trade pattern, it imports oil from Saudi Arabia, Coal from Australia and
soybeans from Brazil, it needs to pay for those imports by exporting large amts to North America,
Europe and rest of East Asia
-Japanese household saving is high compared to US household saving which is low and declining
-ui}}v}u]uv]vZh^v:vµ]vu}}(íõôì[voÇõì[Á}u]vÇ
major movements in Z}µvÇ[oÆZvPµ]vPu]íõôì[v]oÀoµ]vPZ
second half of the decade
-why are land prices so high in Japan? High expected rate of growth and high savings rate, with low
taxation of income from capital and land, Agricultural protectionism and regulations impede rational
allocation of land among alternate uses
-Japan laborers work longer hours, overall productivity is more than twice of US
There is a large growing trade deficit
The reason for the Japan trade surplus(from US), Japan had to import a lot of
US has large foreign exchange deficit-over 1 trillion, need sufficient foreign exchange in order to prevent
depreciation
China is main buyer of US bonds, bringing foreign exchange to US, holding up the US dollar
Samsung Article-strategy by Samsung, to quarantine the senior research group for a flat screen tv, built
the model in 5 months
National Post-v[oPP]vP}µ]À]Ç]ZlÇ}v}u]ZoovP(]vPv
Lack of productivity growth by businesses in Canada
Productivity leads to real wage increases, tax revenue increases, 17/20 countries in productivity growth
'}ÀvuvZ}µov[]vZ]v]vP}Z]PZZv}µo]}vP}ÁZX
Rao
Canada is behind other economies
R&D as a percentage of GDP in Canada is the lowest of the G7
Patents per capita, lower than US or Japan, sign of innovation
Quality of Management, inferior to US, in formal years of education
What should the government do? Improve the competitive business sector, removing regulations
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Feb 3, 2009 Reading 9.1 1980-US and Japan had a balanced trade 1980-84-Large trade deficit from Japan to US, due to Japan being a protectionist country -US import from Japan was 3 times as large as US exports to Japan in 1985, exports had to grow by more than 3 times as fast as imports if Us wanted to keep the trade deficit from widening -Aft:L[Zo ZL2lL]L27Zo}}L}2}Z7]KoL }Z again -The Long term credit Bank of Japan in 1993, said the imbalance was due to price-inelastic high-tech. products, 4.5B of the imbalance was from disc players, video cameras, machine tools that were not produced in the US -Because Japan has a triangular trade pattern, it imports oil from Saudi Arabia, Coal from Australia and soybeans from Brazil, it needs to pay for those imports by exporting large amts to North America, Europe and rest of East Asia -Japanese household saving is high compared to US household saving which is low and declining -KE} }L}K] EZKLZ]LZD^L:L]LK}Z}[ZLo[ZZ}K]L major movements in Z }L[Zo ZL2]L2K][ZL]oZo]L2Z second half of the decade -why are land prices so high in Japan? High expected rate of growth and high savings rate, with low taxation of income from capital and land, Agricultural protectionism and regulations impede rational allocation of land among alternate uses -Japan laborers work longer hours, overall productivity is more than twice of US There is a large growing trade deficit The reason for the Japan trade surplus(from US), Japan had to import a lot of US has large foreign exchange deficit-over 1 trillion, need sufficient foreign exchange in order to prevent depreciation China is main buyer of US bonds, bringing foreign exchange to US, holding up the US dollar Samsung Article-strategy by Samsung, to quarantine the senior research group for a flat screen tv, built the model in 5 months National Post- L[Zo22]L2} ]]]ZZl }L}K] ZooL2 ]L2 L Lack of productivity growth by businesses in Canada Productivity leads to real wage increases, tax revenue increases, 1720 countries in productivity growth }LKLZZ}oL[]L ZZ]ZL]L2}Z]2ZZL}o]}L2}Z: Rao Canada is behind other economies R&D as a percentage of GDP in Canada is the lowest of the G7 Patents per capita, lower than US or Japan, sign of innovation Quality of Management, inferior to US, in formal years of education What should the government do? Improve the competitive business sector, removing regulations www.notesolution.com
More Less
Unlock Document


Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit