IR TEST NOTES number 2

IR TEST NOTES number 2 - IR TEST NOTES Economic...

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IR TEST NOTES Economic Bubble(1979-1989)- PM Nakasone(82-87 long serving PM came to symbolize Japanese affluence, very blunt, high profile, exerted personality not like most PM’s stepped down because of party during third term, Japanese nationalist formerly the director of self-defense, wanted to assert Japan in world affairs, spoke good English got along well with Reagan) -high ranking Japanese should not visit Yasouni Shinto shrine after WWII -Shinto was official religion of Japanese military samurai class, US recognize Shinto as official religion of Japan, made it one of many Shrines represented soldiers that died in service of their county, no PM’s allowed because of American taboo -Nakasone visited Yasokuni Shine, other PM’s have since, China and Korea protested still a sensitive issue although the taboo has been broken -PM’s must visit now to show nationalism -Kami-Japanese ideas of spirits represent people, animals, trees, sun inhabit natural world, determine your life need to keep spirits happy when humans die spirits go to a shrine----Yasokuni Shrine -US has been looked at increasingly as a problem, problems in trade disputes -Japanese trade surplus with US increasing too fast and getting too large -1950’s-light industry small economy, not worried - -developed more value-added products such as electronics, developed large niche in American consumer market -broke into American car market, first small low end then full on -deficit went from 10billion to 60billion -American explanation was Japs were copying technology, dumping goods, taking advantage of free trade, and barrier for imports into Japan of manufactured goods----UNLEVEL PLAYING FIELD -US attempt to fix it was to get JAPS to drop barriers to allow imports -Also block further expansion of Japanese into American markets -Voluntary restraints limited sales of Japanese cars to U.S. SII(Structural Impediments Initiatives)- Structural impediments to free trade(wealthy, retail regulations, wholesale regs, quality control) -Super 301 law passed by congress -if country was using protective practices the goods from that country would get high import tariffs---prevent dumping -Japanese made some changes US became more rational so trade continued even with large surplus -EU also felt deficit crunch----French got nasty gave Japan goods harsh treatment implemented tariffs -Japan turned back on Asia after war in favor of US and western counties -but had to rely on Asia for natural resources -Japan needed to secure Asian natural resources and increase relations with Asian countries -East Asia and Southeast Asia -needed to increase Foreign Direct Investment -1985 Plaza Accord-regulated intl monetary standard devalued dollar and increased value of Yen to help trade deficit -Japan needed to have stronger relationship with Asia-reorientation it with foreign policy -SE Asia got over hatred increased FDI -JAPAN#1, CHINA#2(on the rise quickly), INDIA, US and EU(on decline) Scandals in 1980’s Recruit Cosmos-places executives at companies
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IR TEST NOTES number 2 - IR TEST NOTES Economic...

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