GASB58H3 Lecture : GASB58- Class 6.docx

191 views3 pages

raspberrywalrus834

22 Apr 2012

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Week 6: the late qing: 100 days" reform, boxer uprising and the 1911 revolution. A response to the defeat in the sino-japanese war in 1895. Kang youwei (1858-1927), liang qichao (1873-1929): both natives of guangdong, and juren (holders of provincial-level degrees); later in 1895, kang became a jinshi (presented scholar) Angry with the terms of the treaty with japanese. Wanted the government to refuse to give the concessions to japan. Guangxu (emperor) didn"t have as much influence over the government as. Petition in 1895, as candidate for exams at beijing (jinshi) Reinterpreted confucius as a reformer (kongzi kaizhi kao) Advocated constitutional monarchy after the japanese model. Received by emperor on june 16, 1898; appointed to lead the reform. Kang"s student, co-founded qiangxue hui (society for the study of national strength); One of the leaders of the reform. Famous for renxue (study for benevolence): denouncing confucianism; calling for adoption of western legal and political institutions.

Related Questions

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

Why is the EMU malfunctioning? -mark the correct answer.

		Because not all the EU members are participating
		Because the British did not join the EMU
		Because the Euro lost the value against the dollar in the recent months
		Because it is not the optimal currency area with common budget and monetary policy

Why it is so difficult to have a common fiscal policy in the Eurozone and the EU? -mark the correct answer.

		This is constitutional issue not economic or political
		This is a fundamental issue of the supranational powers of the EU over the national policies
		This is an issue of the lack of common currency among all EU members
		This issue is currently being resolved by the EU Parliament

3.5 points

Why the EU was created? -mark the incorrect answer.

		The EU was created because the West was engaged in Cold War and Europe had to be fast rebuild
		Germany wanted to be unified and only unified Europe would allow that to happen
		The Europeans wanted to merge the markets to help their growth
		The Europeans wanted to confront the power of the USA after the WWII

3.5 points

Why the reforms proposed by Mikhail Gorbachev failed to save communist system in the Soviet Union? -mark the incorrect answer.

		Gorbachev reforms were called perestroika and glasnost
		The reforms led to inflation but improvement of the supply of goods and food
		The wages were higher in the cooperative sector which upset many people who worked in the state enterprises
		The reforms would have succeed but the West did not want to lend money to Gorbachev government

3.5 points

Why we can say that Germany plays the same role for the EU as China for the USA? -mark the correct answer.

		Germany imports capital like China
		Germany has a financial account surplus
		Germany exports manufacturing goods and imports food
		Germany is a net exporter of capital and holds the debt of the indebted Europeans

1) There exists a universally agreed definition of Corporate Governance:

2) The two primary competing views of corporate governance are:

Shareholder vs Agent

Principle vs Agent

Shareholder vs Stakeholder

3) European companies tend to adopt the stakeholder view of governance, while Anglo-American companies tend to focus on the shareholder view

4) Shareholders appoint the management board

5) Corporate governance is best understood as a set of fiduciary and managerial responsibilities

6) Shareholders elect ______________, who appoint ______________, to run corporations

Directors, Mangers

Managers, Directors

Agents, Principles

Chairman, CEOâs

7) The principle/agent problem involves aligning management interests with those of the shareholders

8) Shareholders get their return on investment from the residual (profits) only after all other stakeholders have been paid:

9) Large shareholders (those owning more shares) have more influence over a company than smaller ones

10) The term âinstitutional investorâ includes:

Banks, trust funds, pension funds

Employee representatives, government representatives, unions

Company management and employees that own shares

11) According to the text, auditors, bankers, credit rating agencies and analysts are often referred to as:

Consultants

Gatekeepers

Advisors

None of the above

12) Agency theory:

Explains the relationship between management and employees

Explains the relationship between principles and agents

Explains how sports stars make huge amounts of money

13) The âGerman modelâ of governance in large companies includes:

A âtwo-tierâ governance/board structure

A âsingle-tierâ governance/board structure

A combined board consisting of management, shareholder representatives and other stakeholders

None of the above

14) In a two tiered board structure:

The management board appoints the supervisory board

The supervisory board appoints the management board

The CEO reports to shareholders

The Chairperson reports to the CEO

15) Japanese board structures are unique in that:

The boards consist of a large number of âinsidersâ such as management

Banks often have representatives sit on the boards of their customers

Both A and B

GASB58H3 Lecture : GASB58- Class 6.docx

Document Summary

Get access

Related Documents

GASB58H3 Lecture Notes - Lecture 6: Empress Dowager Cixi, Guangxu Emperor, Kang Youwei

CHIN 50W Lecture Notes - Lecture 17: Hu Shih, Tongmenghui, Japanese Militarism

CHIN 50 Lecture Notes - Lecture 17: Empress Dowager Cixi, Kang Youwei, Liang Qichao

Related Questions