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Unformatted text preview: IB 403 02.02.09 Japan Review • Budget Deficit: When Government Spending is more than Government Tax Collection, which can become a problem. G>T • Stimulus Package is to get out of a RECESSION…not a deficit. A deficit actually increases. • “Two Japans”: Heavy income inequality • Another problem, Japan has a lot of our Treasury low interest securities which gives them low returns • If they revalue their currency, their exports are going to hurt more • Revaluation is a government action • The Future of Japan is based on 3 models: Anglo-Saxon Model (High Risk- US) (Managers work to increase shareholder value). Mc Kinsey Report says it can be a Hybrid Model (Jap-Anglo Saxon: Retain the profit making aspect of Anglo but adapt it to the culture). Third model is a pessimistic model…? • US GDP is a consumption driven economy, hence CA Deficit • Japan GDP is a investment driven economy, hence CA Surplus Singapore: An Export Driven Economy • Strategies: 1) Import Substitution Strategies (Inward Oriented): Consume most from home, also includes a lot of Latin...
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This note was uploaded on 10/13/2010 for the course IB 403 taught by Professor Sooreea during the Fall '09 term at Pennsylvania State University, University Park.
- Fall '09