This document discusses Japan's role in the East Asian political economy. It examines the investment and trade links between Japan and other parts of East Asia. On investment links, it describes how Japanese corporations established production facilities in East Asia to take advantage of lower costs. On trade links, it notes Japan's exports to East Asia have increased while exports to the US have decreased. It also analyzes how the Japanese development model, characterized by close state-business ties and national champions, influenced development strategies in East Asia but also raised concerns about distortions and corruption.
Economic growth is defined as the rate of expansion that can move an underdeveloped country from near subsistence mode of living to substantially higher level over a long period of time.
GDP all methods explanations with examples,team members =HIRDAYRAJ SAROJ, APURVA SATIA, ADITI MULE, from SVIMS College Wadala,Mumbai BATCH-MMS I (2016-2018)
Economic growth is defined as the rate of expansion that can move an underdeveloped country from near subsistence mode of living to substantially higher level over a long period of time.
GDP all methods explanations with examples,team members =HIRDAYRAJ SAROJ, APURVA SATIA, ADITI MULE, from SVIMS College Wadala,Mumbai BATCH-MMS I (2016-2018)
Gross Domestic Product (GDP) consists of consumer spending, investment expenditure, government spending and net exports hence it portrays an all-inclusive picture of an economy because of which it provides an insight to investors which highlights the trend of the economy by comparing GDP levels as an index. It is used as an indicator for most governments and economic decision-makers for planning and policy formulation. In case of GDP, each component is given the weight of its relative price. GDP helps the investors to manage their portfolios by providing them with guidance about the state of the economy. Calculation of GDP provides with the general health of the economy. A negative GDP growth portrays bad signals for the economy. When the economy is expanding, the GDP growth rate is positive. If it's growing, so will businesses, jobs and personal income. If the GDP growth rate turns negative, then the country's economy is in a recession. It is not a measure of the overall standard of living or well-being of a country. Although changes in the output of goods and services per person (GDP per capita) are often used as a measure of whether the average citizen in a country is better or worse off, it does not capture things that may be deemed important to general well-being. Without an increase in GDP, there are always going to be limitations to economic development.
Development of sri lanka in South Asian contextJ Wanniarachchi
Sri Lanka is still a developing country. We have to learn lot from other Asian Countries who are already in great development. so through this presentation it compared the economic situation of Sri Lanka with Malaysia. And imply what are the lessons that we can gain from Malaysian economy.
socio economic dimensions of Nepal, population of Nepal and its projection, population density of Nepal , Age and sex structure in Nepal, Employee trends in Nepal,Labour Market issues
This report gives the different aspects relating the GDP growth of India. GDP rate since independence, reasons for fluctuation in GDP, role of Indian government in growth of GDP, role of public, privet and government in growth of GDP and finally reasons of devaluation of devaluation of rupee in comparison to dollar are outlined in a nutshell.
India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector shrank and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.
Regional imbalances or disparities means wide differences in per capita income, literacy rates, health and education services, levels of industrialization, etc. between different regions. Regions may be either States or regions within a State. In India there are enormous imbalances on various accounts. The exploitative nature of British colonial rule either created or accentuated regional disparities. The planning in independent India has also not been able to remove these disparities. Balanced regional development has always been an essential component of the Indian development strategy. Since all parts of the country are not equally well endowed with physical and human resources to take advantage of growth opportunities, and since historical inequalities have not been eliminated, planned intervention is required to ensure that large regional imbalances do not occur. Spectacular growth attained by some regions and in some sectors in India, after independence, is in contrast to low levels of development still prevailing in many parts. Therefore, it was felt that the State had a major role to play in removing disparities. This commitment was reflected in the Constitution and in planning objectives. Two major institutions, which were expected to work towards reducing the regional imbalances after independence, were the Finance Commission and the NITI Aayog (Planning Commission) . The Finance Commission has only limited role to play. Hence, more responsibility is vested on the NITI Aayog (Planning Commission). India’s successive Five Year Plans have stressed the need to develop backward regions of the country. In promoting regional balanced development, public sector enterprises were located in backward areas of the country during the early phase of economic planning. In spite of pro-backward areas policies and programmes, considerable economic and social inequalities exist among different States of India, as reflected in differences in per capita State Domestic Product. While income growth performance has diverged, there is welcome evidence of some convergence in education and health indicators across the states.
Gross Domestic Product (GDP) consists of consumer spending, investment expenditure, government spending and net exports hence it portrays an all-inclusive picture of an economy because of which it provides an insight to investors which highlights the trend of the economy by comparing GDP levels as an index. It is used as an indicator for most governments and economic decision-makers for planning and policy formulation. In case of GDP, each component is given the weight of its relative price. GDP helps the investors to manage their portfolios by providing them with guidance about the state of the economy. Calculation of GDP provides with the general health of the economy. A negative GDP growth portrays bad signals for the economy. When the economy is expanding, the GDP growth rate is positive. If it's growing, so will businesses, jobs and personal income. If the GDP growth rate turns negative, then the country's economy is in a recession. It is not a measure of the overall standard of living or well-being of a country. Although changes in the output of goods and services per person (GDP per capita) are often used as a measure of whether the average citizen in a country is better or worse off, it does not capture things that may be deemed important to general well-being. Without an increase in GDP, there are always going to be limitations to economic development.
Development of sri lanka in South Asian contextJ Wanniarachchi
Sri Lanka is still a developing country. We have to learn lot from other Asian Countries who are already in great development. so through this presentation it compared the economic situation of Sri Lanka with Malaysia. And imply what are the lessons that we can gain from Malaysian economy.
socio economic dimensions of Nepal, population of Nepal and its projection, population density of Nepal , Age and sex structure in Nepal, Employee trends in Nepal,Labour Market issues
This report gives the different aspects relating the GDP growth of India. GDP rate since independence, reasons for fluctuation in GDP, role of Indian government in growth of GDP, role of public, privet and government in growth of GDP and finally reasons of devaluation of devaluation of rupee in comparison to dollar are outlined in a nutshell.
India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector shrank and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.
Regional imbalances or disparities means wide differences in per capita income, literacy rates, health and education services, levels of industrialization, etc. between different regions. Regions may be either States or regions within a State. In India there are enormous imbalances on various accounts. The exploitative nature of British colonial rule either created or accentuated regional disparities. The planning in independent India has also not been able to remove these disparities. Balanced regional development has always been an essential component of the Indian development strategy. Since all parts of the country are not equally well endowed with physical and human resources to take advantage of growth opportunities, and since historical inequalities have not been eliminated, planned intervention is required to ensure that large regional imbalances do not occur. Spectacular growth attained by some regions and in some sectors in India, after independence, is in contrast to low levels of development still prevailing in many parts. Therefore, it was felt that the State had a major role to play in removing disparities. This commitment was reflected in the Constitution and in planning objectives. Two major institutions, which were expected to work towards reducing the regional imbalances after independence, were the Finance Commission and the NITI Aayog (Planning Commission) . The Finance Commission has only limited role to play. Hence, more responsibility is vested on the NITI Aayog (Planning Commission). India’s successive Five Year Plans have stressed the need to develop backward regions of the country. In promoting regional balanced development, public sector enterprises were located in backward areas of the country during the early phase of economic planning. In spite of pro-backward areas policies and programmes, considerable economic and social inequalities exist among different States of India, as reflected in differences in per capita State Domestic Product. While income growth performance has diverged, there is welcome evidence of some convergence in education and health indicators across the states.
नामस्मरण सतत केले की आपल्या क्षुद्र्पणाची आवरणे गळून पडू लागतात आणि आपला "हवे नको याचा आग्रह" नाहीसा होऊ लागतो! रोजच्या जीवनात याचा आपण प्रसन्न अनुभव घेऊ शकतो आणि ब्रह्म प्रगट होण्याच्या अर्थात, खऱ्या शरणागतीच्या, आत्मानुभूतीच्या आणि विश्वकल्याणाच्या मार्गावर अग्रेसर होतो!
श्रीराम समर्थ!
Parapsychology Research and Education Free Course 2017The AZIRE
The PowerPoint lists some of the information about ParaMOOC2017, a free open online course on serious academic and scientific research into what seem to be psychic phenomena and on their implications for science in general. Physics, psychology, anthropology, and history are among the disciplinary approaches included. The Slide Show includes info about the course and the names, presentation titles and biographies of the guest lecturers. To enroll in the course (open until August 31st, 2017, although live sessions until February 24th, recordings of live sessions and materials will be available to new students through August): http://the-azire.wiziq.com/course/178247-parapsychology-research-and-education-paramooc2017
Session 1 kumagai japanese ofdi and the industrialisation in east asia and as...ntuperc
Japanese outward FDI(OFDI) to East Asia is a source of export-oriented industrialisation in the region, especially for ASEAN member countries. Japanese OFDI increases significantly after the Plaza According 1985, then again peaked at the middle of the 1990’s and plunged after the Asian financial crisis 1997/98, then resurged in the first half of the 2000s. The formation of production networks through Japanese OFDI helps the export-oriented industrialization in East Asia and ASEAN countries, as well as it is a driving force of upgrading industrial structure in the region, a la Flying Geese pattern.
Columbus 2020 Investor Update | January 2015 | Michael WeidokalOne Columbus
Columbus 2020 and the Ohio Development Services Agency held a special Columbus 2020 Investor Update where Columbus Global Connect, the Columbus Region's global trade and investment strategy, was unveiled. Michael Weidokal, founder and executive director of International Strategic Analysis, provided a 2015 Global Trade and Investment Outlook.
Aranca Views | China – The Japan of the ‘80s?Aranca
China’s recent strong growth is similar to those behind Japan’s economic performance in the 1980s. The Aranca article focuses on the factors where China differs from Japan and some striking similarities in the two economies.
There is no denying that the Mekong region has become an economic battleground where Japan and China are competing to gain and sustain economic influence in the region.
However, each country has managed overall to create or maintain its own sphere of influence in the so-called CLMV (Cambodia, Laos, Myanmar and Vietnam) thus reducing the risk of direct head-to-head competition. Even within one single country, Japan and China tend to be involved in different areas, in different types of activities and through different instruments, thus avoiding real confrontation. Japanese investment in the CLMV exhibit a number of characteristics that set it apart from Chinese investment.
First, a major feature of Japanese investment in the CLMV is its concentration in Special Economic Zones. Secondly, in addition to cheap labor, some Japanese firms also seek to make the best of Cambodia’s and Lao’s proximity to Thailand, following the so-called Thailand+1 strategy, and transferring the most labor-intensive part of their production process to countries where labor is much cheaper than in Thailand. Indeed, as the historical basis of production for Japanese companies, Thailand lies at the heart of vertically integrated regional production networks. Thirdly, Cambodia, Lao PDR, Myanmar and Vietnam are not exclusively perceived by Japanese investors as potential sources of cheap labor. Due to the rise in their GDP per head over the past few years, they are also increasingly perceived as potential markets.
Infrastructure development is arguably the area where competition, between Japan and China is most direct in the Mekong region. Japanese companies and government agencies have had a long head start in infrastructure investment in the region. In particular, ODA-backed infrastructure clearly helped Japanese manufacturing companies to construct production networks on the basis of division of labor among different countries.
In an effort to better connect its southern provinces to the Mekong region, which constitutes a natural backyard, China has also recently engaged in infrastructure investment, and even more so over the past few years in the context of the recently launched Belt and Road Initiative (BRI). As a result, the Mekong region has become a battleground between the two big regional powers.
Behind economics, however, the two countries are also competing for political influence, and their commitment to development promotion, and in particular to infrastructure development, may be instrumentalized with strategic objectives in mind. While Japan’s interest in assisting infrastructure development in the region is nothing new, the country’s approach has apparently changed under China’s pressure and has become more “strategic” and to a large extent “politicized”. This is perhaps where the impact of the China factor has been the largest on Japan’s stance vis-à-vis the region.
5th International Disaster and Risk Conference IDRC 2014 Integrative Risk Management - The role of science, technology & practice 24-28 August 2014 in Davos, Switzerland
Para tratar da expansão da economia chinesa e seus impactos regionais e globais, a Fundação FHC receberá o professor Tomoo Marukawa, do Instituto de Ciências Sociais da Universidade de Tóquio, autor de diversos livros sobre o desenvolvimento chinês.
TOMOO MARUKAWA
Professor do Instituto de Ciências Sociais da Universidade de Tóquio, foi pesquisador do Institute of Developing Economies (IDE). É autor de vários livros sobre a indústria e a economia chinesa, como "O Sonho Chinês: o Capitalismo de Massa Muda o Mundo (Chinese Dream: Mass Capitalism Changes the World, Chikuma Shinsho, 2013) e "A Economia Contemporânea Chinesa" (Contemporary Chinese Economy, Yuhikaku, 2013).
Japan moved towards the road of economic export-oriented development, foreign trade and foreign investment increased rapidly after World War II, and the economy recovered rapidly and came to the forefront of the world. Then, what role did foreign capital and foreign trade play in the process of economic growth? Based on the import, export FDI and GDP data of Japan from 1996 to 2015, this paper uses eviews 7.2 and co-integration test to confirm the long-term co-integration relationship between GDP and import, export, FDI. The results show that the long-term equilibrium relationship between GDP and export is positive correlation, and GDP and import, FDI are negatively related long-term equilibrium relations. The influence of Japan’s export-oriented economy on economic growth is mainly through the form of export trade.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
3. 3
EAS205AutumnSemester 2013-2014
Objectives:
1) To examine the investment links between Japan
and other parts of East Asia.
1) To examine the trade links between Japan and
other parts of East Asia.
1) To analyze in what ways the Japanese model of
development has had an impact on East Asia.
2) To look at Japan’s response to the Asian
Financial Crisis and new initiatives.
EAS205AutumnSemester 2015-2016
3
5. 5
EAS205AutumnSemester 2013-2014
Japan-East Asia-US link
• Japanese economy developed rapidly in the
postwar period on the basis of building close
economic links with both East Asia and the US.
• US has been the most important market for
Japanese consumer goods,
• the East Asian region has been important for
Japan as a source of raw materials, as a
production base and increasingly as a market.
5
EAS205AutumnSemester 2015-2016
6. 6
EAS205AutumnSemester 2013-2014
Linked countries
• The most important countries for Japan are:
the East Asian Newly Industrializing Economies
(NIEs) of Hong Kong, Singapore, South Korea
and Taiwan,
The Association for Southeast Asian Nations
(ASEAN) - Indonesia, Malaysia, the
Philippines, Thailand, Burma, Cambodia, Laos
and Vietnam
....and of course, China.
6
EAS205AutumnSemester 2015-2016
7. 7
EAS205AutumnSemester 2013-2014
Linked through...
• These economies have been closely linked to
Japan through:
• Official Development Assistance (ODA),
• Foreign direct investment (FDI),
• trade,
• Development of production links – helping to link the
economies together and promote integration.
• Over the years, Japanese companies (e.g.,
electronics and automotives) have transferred their
production facilities to East Asia.
A manufacturing platform for exporting finished products
to the United States and elsewhere.
7
EAS205AutumnSemester 2015-2016
8. 8
EAS205AutumnSemester 2013-2014
East Asia’s Reaction
• The links with East Asia brought back memories of
Japan’s wartime attempt to dominate the region
and create the so-called Greater East Asia Co-
prosperity Sphere.
• In the 1960 and 1970s new economic ‘Japanese
imperialism’ was feared.
• Some concerns remain in East Asia over the
dominant position of the Japanese economy, but
this has greatly decreased over the years.
8
EAS205AutumnSemester 2015-2016
10. 10
EAS205AutumnSemester 2013-2014
…certain advantages.
• The investment links developed
between Japan and other parts of East
Asia reflect the way in which Japanese
corporations have taken advantage of:
• The close geographical location.
• Cheap factors of production, land
and labour.
10
EAS205AutumnSemester 2015-2016
11. 11
EAS205AutumnSemester 2013-2014
Links: Advantages
• Foreign Direct Investments (FDI) first
focused on the acquisition of resources in
the 1950s and 1960s.
• Japan is a resource-poor country.
• Southeast Asia offered Japan a nearby
location to acquire the resources needed
for its own industrial development.
11
EAS205AutumnSemester 2015-2016
12. 12
EAS205AutumnSemester 2013-2014
... and the consequences
• Economic success at home, gradually led to...
the increase in the cost of production, then...
a decline in international competitiveness,
particularly as the cost of land and labour
increased in Japan.
• Japan’s economic success was causing
economic conflict with its major trade partner,
the United States.
textiles in the 1960s + high technology products
(e.g. computer chip) since the 1990s. 12
EAS205AutumnSemester 2015-2016
13. 13
EAS205AutumnSemester 2013-2014
Impact of the Nixon Shocks
• By the end of 1960 – Japan’s status as an
export-oriented economy structural changes
in the world economy.
• Most important factor to Japan’s economic
relationship with East Asia was the impact of
the Nixon shocks of August 1971.
• President Richard Nixon announced that, due to
the US’s deteriorating balance of payments, the
US would discontinue gold convertibility.
• No longer converting gold to dollars at 32 dollars
an ounce. 13
EAS205AutumnSemester 2015-2016
14. 14
EAS205AutumnSemester 2013-2014
Yen moved to floating rate
• The move by US to floating exchange rates
a rapid increase in the value of the yen.
• Japan resisted, but was forced to float the yen
• Moved from the 1949 peg of 360 yen to the
dollar to 308-315 yen by the end of the 1971.
The increase value of the yen made the cost of
producing overseas cheaper.
Japanese companies started to move
production to East Asia.
14
EAS205AutumnSemester 2015-2016
15. 15
EAS205AutumnSemester 2013-2014
Higher YEN led to
more FDI in East Asia
• In the 1970s, a large proportion of this FDI
was concentrated in industries such as textiles
(30-40 %) and electronics (15-30 %).
• The advantage to Japanese companies of
producing in East Asia was not just the costs:
Japanese consumer goods produced in other parts
of East Asia could be exported from those countries
to the US.
This alleviates the trade conflict with the US.
15
EAS205AutumnSemester 2015-2016
16. 16
EAS205AutumnSemester 2013-2014
Another major increase in
FDI: External environment
• Due to changes in the external environment,
following the Group of Five* Plaza Agreement**
of 1985
• The Agreement encouraged even more Japanese
companies to move production overseas.
* US, UK, Japan, Germany, and France
**The agreement was made at the Plaza
Hotel in New York
16
EAS205AutumnSemester 2015-2016
17. 17
EAS205AutumnSemester 2013-2014
Yen exchange value surge
Following the Plaza Accord...
• The yen was revalued by about 40 % between
1985 and 1987.
• Following the rise in the value of the yen much of
Japan’s investment went to Europe and North
America.
Japanese companies produced for the local or
regional market,
• East Asia continued to be an important site of
investment for Japan.
the value of investment rose considerably, although
the % remained about the same.
17
EAS205AutumnSemester 2015-2016
18. 18
EAS205AutumnSemester 2013-2014
further effects
• East Asia became important as a base for a
regional production system.
• Parts/components made in different countries.
• Cost-conscious, Japanese investment moved to
Southeast Asia rather than the NIEs.
• Japanese investments in electronics industry in
East Asia was hollowing out production in Japan.
• Japan exported 13.4million TV sets in 1985.
• ... but decreased to 4.5 million sets in 1992.
18
EAS205AutumnSemester 2015-2016
19. 19
EAS205AutumnSemester 2013-2014
Japan’s FDI to East Asia,
mid-1990’s ~
• In total dollar, the overall proportion to total FDI,
declined, and fluctuated between 23 and 10 %.
• The geographical focus has shifted.
• China reached ca. 14 % in 2005, sloped down to
ca. 5% in 2008, and was ca. 12% in 2012.
• ASEAN-4 (Indonesia, Malaysia, Philippines, and Thailand)
nearly reached 15% in 2011 and 8 % for the
NIES-4 (South Korea, Taiwan, Hong Kong and Singapore).
• China has grown in importance as a destination
for Japanese FDI.
• but it has been affected by the recent political
tensions (WWII legacies, territorial disputes, etc.)
19
EAS205AutumnSemester 2015-2016
20. 20
EAS205AutumnSemester 2013-2014
The overall impact of
Japanese investment to Asia
• Japanese firms were employing nearly two million
workers in Asia each year in 1999-2000.
• The US has remained Japan’s largest trading
partner, but its share decreased during the last 30
years despite a temporary surge in 2009.
20
EAS205AutumnSemester 2015-2016
22. 22
EAS205AutumnSemester 2013-2014
Changes in the patterns of
exports to US and Asia
• The US market has dropped in importance for
Japanese exports:
• 30.7 % in 1970, 37.2 % in 1985 (Plaza Accord),
31.5 % in 1990, 29.7 % in 2000, and 24.6 % in
2003, then 13.7% in 2011.
• Japan’s trade with East Asia (NIEs-4, ASEAN-4
and China) has also fluctuated, but on the
general upward trend:
• 19 % of the total in 1970, 24 % in 1980 and 29 %
in 1990, 45 % in 2003. It reached nearly 50%
(49.3%) in 2011.
22
EAS205AutumnSemester 2015-2016
24. 24
EAS205AutumnSemester 2013-2014
... and western Europe ?
Though slowing down recently, Japanese export to Asia exceeds 50% of
the total export since 2004, while export to US and western Europe have
remained relatively low (ca. 15% and 12.5%, respectively).
24
EAS205AutumnSemester 2015-2016
25. 25
EAS205AutumnSemester 2013-2014
... and with China?
• In 2003 China rated 15.6 % of Japan’s total trade
(3.5% in 1990).
• China is growing in importance for Japan.
• The total amount of exports to East Asia has grown
from 19% in 1970, 24% in 1980, 29% in 1990, 39.7
% in 2000, to 44.9 % in 2003 and 49.3% in 2011.
• However, the pattern of trade relations between
Japan and East Asia since the late 1990s has
remained asymmetrical.
25
EAS205AutumnSemester 2015-2016
26. 26
EAS205AutumnSemester 2013-2014
How is the Japan-East Asia
trade asymmetrical?
• Japan is a major exporter of goods to East Asia
• 49.3 % of Japan’s exports is to East Asia in 2011.
• East Asian economies have struggled to penetrate
the Japanese market.
Manufactured goods + agricultural products (rice).
• In 2011, the total imports from East Asia was of
30.4%, the trade deficit stood at US$63billion.
• The majority of East Asia’s trade deficit with Japan
comes from the export/import imbalance of
manufactured goods (electronics, transportation
machinery e.g., cars, etc).
26
EAS205AutumnSemester 2015-2016
27. 27
EAS205AutumnSemester 2013-2014
What trade model?
• Despite Japan’s dominance in many sectors of
the East Asian regional economy, US market is
still important in absorbing finished goods.
• A triangular trade pattern still exists between
Japan, East Asia and the US (the EU is also an
important market, too).
• Since the East Asian financial crisis (1997), the
trade patterns remained basically the same.
• The crisis raised the question on the Japanese
development model pursued in the East Asia.
Since the East Asian financial crisis (1997), the
trade patterns remained basically the same.
A triangular trade pattern still exists between
Japan, East Asia and the US (the EU is also an
important market, too).
27
EAS205AutumnSemester 2015-2016
28. 28
EAS205AutumnSemester 2013-2014
Recent changes
• Significant recent change has been the growing
importance of trade with China.
• China became particularly important destination for
Japanese manufacturing investment.
Since 1980s Dalian area is popular with Japanese
manufacturers, as in the electronics industry.
In 2013 there are over 580 Japanese companies
(Sony, Panasonic, Toshiba, Canon, TOTO, etc.).
However, as with other East Asian economies, many
of the finished products from China end up in the
American market.
28
EAS205AutumnSemester 2015-2016
29. 29
EAS205AutumnSemester 2013-2014
Growing interdependency
The large deficit for the US in its trade with
China is creating economic conflicts similar to
those with Japan.
Japan, the NIEs, ASEAN 4 and China, are still
reliant on the US market to some extent.
29
EAS205AutumnSemester 2015-2016
32. 32
EAS205AutumnSemester 2013-2014
State intervention to
nurture a particular sector
Malaysian government cooperated with Mitsubishi motors
for nearly 20 years in setting up Proton.
Mitsubishi held a stake in the company, but the local
manufacturing company was basically state-controlled.
State support in the economy can lead to national
champions, but companies are often uncompetitive
internationally.
Would Malaysians really choose the Proton even if foreign
competitors cars are available?
Or, should nationals of a country support the ‘national car’
by buying it preferentially?
It may also make the state protectionist: Imported foreign
cars may undermine domestic models, which may lead to
establishing tariffs to protect the domestic industry.
32
EAS205AutumnSemester 2015-2016
33. 33
EAS205AutumnSemester 2013-2014
Major problems of the
model
• The model distorts the market by the close relations
between state officials and the private sector.
• It may also give rise to corruption:
• government officials may be rewarded for their
support of the industry: direct benefits while in the
government / a job after retirement.
• These concerns were aired at the time of the 1997
Asian Financial Crisis.
There were charges of ‘crony capitalism’ against the
East Asian economies (Thailand, South Korea,
Indonesia, Malaysia) that suffered.
33
EAS205AutumnSemester 2015-2016
34. 34
EAS205AutumnSemester 2013-2014
Development model:
Export-oriented growth
• Outward-looking policy: Export oriented
growth, not inward looking.
• ≠Import substitution is based on the idea that
a developing country should substitute the
imported products (e.g., consumer goods), by
locally produced goods.
34
EAS205AutumnSemester 2015-2016
35. 35
EAS205AutumnSemester 2013-2014
East Asia’s choice
• Basically followed export oriented policies,
prioritizing attraction of foreign investment to
build up an export base.
• In this context, the government can become
active in offering support and incentives to
industries likely to focus on exporting (e.g.
electronics, electrical equipment, etc.).
35
EAS205AutumnSemester 2015-2016
36. 36
EAS205AutumnSemester 2013-2014
Role of funds from banks
• Banks’ support to companies – offering loans at
preferential rates.
• Develop close links between banks (rather than
the stock market) + the funding of companies.
• For Japanese corporations, local companies
have developed as suppliers of components to
Japanese brands (auto parts in Thailand or
electronics component Malaysia).
36
EAS205AutumnSemester 2015-2016
38. 38
EAS205AutumnSemester 2013-2014
The concept of
‘flying geese’ model
• Once Japan moves up to a higher level of
technology
• the older technology cascades down to the next
level of development (=the next goose in the
formation).
• which then is able to develop by using the lower
level of technology.
• It is the transfer of older technology, then, that
gives the formation its shape and Japan’s
position as the lead goose. 38
EAS205AutumnSemester 2015-2016
39. 39
EAS205AutumnSemester 2013-2014
What makes the model
work
• Supporters say it is the ability of countries
further down the line to maintain comparative
advantage.
• It is clearly built on the idea of Japan as the
lead goose, always able to advance and
develop new technologies.
• The ‘follower’ countries would use the lower
level of technology that Japan no longer
needs for their own development.
39
EAS205AutumnSemester 2015-2016
40. 40
EAS205AutumnSemester 2013-2014
practically speaking...
• Take the television industry. It would mean that:
• Once LED screen TV production has been
established in Japan, TFT televisions would then
be produced elsewhere in East Asia.
• The high level of growth achieved by the East
Asian economies, sometimes higher than the 10%
in the high growth period, seemed to give support
to the model...
• ...At least until the Asian Financial Crisis of 1997.
40
EAS205AutumnSemester 2015-2016
41. 41
EAS205AutumnSemester 2013-2014
... times change
• Japanese industry has changed over the
years, in line with moving to a higher level of
technological sophistication in the products
produced.
• In the 1960s, Japan was a major textile
producer, creating the great ‘textile wrangle’
with the US.
...but now, Japan relies on imports of textiles
rather than produce them itself.
• Many of these are now imported from China
41
EAS205AutumnSemester 2015-2016
42. 42
EAS205AutumnSemester 2013-2014
also in the region...
• Some of the industrial sectors where
Japan used to be a key producer is now
taken over by another country.
Example: shipbuilding, once a sector of
the economy where Japan dominated,
was taken over by South Korea in the
1970s.
42
EAS205AutumnSemester 2015-2016
43. 43
EAS205AutumnSemester 2013-2014
Where the model fails
• The ‘flying geese’ model is technology
driven, whereas the production of
goods involves not only technology.
• Technology may not mean that
production always heads in the same
direction: out of Japan.
...an example?
43
EAS205AutumnSemester 2015-2016
44. 44
EAS205AutumnSemester 2013-2014
Take Sony’s case
• Sony had used China as its production base for
the Camcorders.
• But in 2003, due to a change in production, it
decided to produce Camcorders for the US
market back in Japan. Why?
Answer: a new cell-based manufacturing system
enabling the company to manufacture a product one
day after the order is taken and deliver it the next.
more efficient and competitive to do the work in
Japan, despite the lower cost of production in
China.
44
EAS205AutumnSemester 2015-2016
46. 46
EAS205AutumnSemester 2013-2014
What the model means
• The flying geese pattern seen in the sky is in
reality the hierarchical and asymmetrical
relationship of inequality on the ground.
• What Japan is doing, from this perspective, is:
• To promote a particular model of development.
• A model different from the market driven
approach of Anglo-American capitalism.
• Japan always remains in lead position.
46
EAS205AutumnSemester 2015-2016
48. 48
EAS205AutumnSemester 2013-2014
Background of the
collapse
• July 1997: the Thai Baht collapsed with a sudden
outflow of capital from the country.
• Spread to other East Asian currencies during the year,
e.g., Malaysia, the Philippines, Hong Kong, Indonesia,
and South Korea.
• The Japanese model was thought to have international
competitiveness and to be an alternative to the Anglo-
Saxon model.
• After the crisis, a change occurred in Japan’s relations
with its East Asian neighbours. 48
EAS205AutumnSemester 2015-2016
49. 49
EAS205AutumnSemester 2013-2014
Who’s fault, who’s fault?
• The responsibility for the crisis was indirectly
attributed to Japan for:
• Establishing a dependency of the economic
structure on Japanese subcontracting/investing.
• Over-dependent on exports.
• Close links between government and business,
• Lack of transparency.
• Japan claimed that the problem lays in the
dollar-peg currency system of the East Asian
economies and a large debt.
(i.e. temporary mismanagement problem, not of the structure)
49
EAS205AutumnSemester 2015-2016
50. 50
EAS205AutumnSemester 2013-2014
Japan’s initial response
• Offered a rescue package for boosting their
economies without major economic
restructuring:
➡Establishment of the Asian Monetary Fund
(AMF), mainly sponsored by Japan.
• ...but Japan was forced to withdraw the proposal
for the AMF because of strong objection by the
US Treasury, IMF and China.
50
EAS205AutumnSemester 2015-2016
51. 51
EAS205AutumnSemester 2013-2014
Countering criticism and
containing image of failure
• Japan took initiatives in late 1998 to reassert its
economic model and regional leadership:
• Launched a package to stimulate the Japanese
economy to absorb more imports from East Asian
states.
• Issued export credits to ensure the circulation of
intra-regional trade.
• A new ODA to provide up-dated technology to
regional states.
• A US$30 billion rescue package without obligation of
undergoing economic reforms. 51
EAS205AutumnSemester 2015-2016
53. 53
EAS205AutumnSemester 2013-2014
What resulted for Japan
• Japan benefitted from further economic
cooperation with East Asian states.
• In the interim, the Japanese economy has become
more dependent on China’s economic growth.
• Pressure on Japan to liberalize its market.
• A movement to promote the formation of Free
Trade Areas (FTAs) and agreement on Economic
Partnership (EPA) within East Asia emerged. 53
EAS205AutumnSemester 2015-2016
54. 54
EAS205AutumnSemester 2013-2014
FTA/EPAs with Asian
countries
Countries with FTA/EPA Effective in
Japan-Viet Nam Oct. 2009
Japan-Philippines Dec. 2008
Japan-Burnei Jul. 2008
Japan-Indonesia Jul. 2008
Japan-Thailand Nov. 2007
Japan-Malaysia Jul. 2006
Japan-Singapore Nov.2002
ASEAN-Japan Dec. 2008
54
EAS205AutumnSemester 2015-2016
55. 55
EAS205AutumnSemester 2013-2014
Japan- China- South Korea
• Trade amongst these three countries totaled
$690billion in 2011
• Negotiations difficult due to outside factors, such
as territorial disputes
55
EAS205AutumnSemester 2015-2016
56. 56
EAS205AutumnSemester 2013-2014
Trans-Pacific Partnership
56
EAS205AutumnSemester 2015-2016
• Agreement reached on 5th
October 2007
• Regulation across goods and service, trade,
agricultural tariffs and patents and copyright
• Pros: Will boost growth for particular countries such
as Malaysia and Vietnam; forecasted 0.5% average
yearly growth.
• Cons: Undermining of wages and working
conditions, corporations overriding governments
What does this mean for
Japan?
58. 58
EAS205AutumnSemester 2013-2014
• An opportunity to catch up with China
• Japan’s market opened up to imports:
A possible decline in food self-sufficiency
Negative effects on the labour market
Abandonment of rural areas
• Threat to healthcare system
Trans-Pacific Partnership
59. 59
EAS205AutumnSemester 2013-2014
Conclusion
• Japan's role in the East Asian regional
economy.
• The investment links between Japan and
other parts of East Asia
• The impact of the Japanese model of
development on East Asia.
• Japan’s response to the Asian Financial
Crisis.
• The trade links between Japan and other
parts of East Asia. 59
EAS205AutumnSemester 2015-2016
Editor's Notes
Hong Kong, Singapore – Strategic business platform for the finances and trade (import-export).
ASEAN: the Association of Southeast Asian Nations is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.
ASEAN Plus Three (APT) is a forum that functions as a coordinator of cooperation between the Association of Southeast Asian Nations and the three East Asia nations of China, Japan, and South Korea.
ODA: Provides monetary help, infrastructure, emergency assistance, and public facilities to underdeveloped nations.
Foreign direct investment (FDI) is direct investment into production in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is done for many reasons including to take advantage of cheaper wages,and/or for special investment privileges such as tax exemptions offered by the country as an incentive to gain tariff-free access to the markets of the country or the region. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
金本位制から
Rapid increase in the value of yen – Graph?
例の写真
Group of 5 nations: US, UK, Japan, Germany and France. Plaza Accord of 1985.
The Plaza Accord or Plaza Agreement was an agreement between the governments of France, West Germany, Japan, the United States, and the United Kingdom, to depreciate the U.S. dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets. The five governments signed the accord on September 22, 1985 at the Plaza Hotel in New York City.
The signing of the Plaza Accord was significant in that it reflected Japan's emergence as a real player in managing the international monetary system. Yet it is postulated[4] that it contributed to the Japanese asset price bubble, which ended up in a serious recession, the so-called Lost Decade.
ASEAN-4 (Indonesia, Malaysia, Philippines, and Thailand). NIEs-4 (South Korea, Taiwan, Hong Kong and Singapore)
The Chiang Mai Initiative (CMI) is a multilateral currency swap arrangement among the ten members of the Association of Southeast Asian Nations (ASEAN), the People's Republic of China (including Hong Kong), Japan, and South Korea. It draws from a foreign exchange reserves pool worth US$120 billion and was launched on 24 March 2010. That pool has been expanded to $240 billion in 2012.