recession, Korea’s demand for imported cars continued to increase. Moreover, Korean market conditions are changing in favor of Japanese automobile manufacturers due to Korean government’s recent changes in trade policy.
By reading this business plan, you will be able to get a clear vision and reasons why our company should enter into the Korean automobile market in the near future.
II. 2. The progress of Yen carry trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition, The sharp increase in foreign bank as
trade
Since 1990s, Japanese government and central bank started lowering interest rate policies so that Yen carry trade has begun.
1) After Kobe Earthquake in 1995, the Bank of Japan lowers the interest rate at 1%. In 1997, as financial crisis in East-Asia was broadening, Yen carry assets were paid off. In addition, The sharp increase in foreign bank assets in 1997 and 1998 is accounte
trade barriers, tariff rates, liberalization of the service sector, investment expansion, intellectual property rights, competition policies and broad economic cooperation. Eventually in 2005 negotiations were stopped partly because of the lack of consensus over economic issues such as trade imbalance and agricultural problems. But they started over again, they held Working Level Consultations 4
trade volume, foreign dependency, scale of foreign loan, etc)
3. The system of classification of exchange rate system of IMF
• Exchange arrangement with no separate legal tender
12 countries of EU organize EMU and use a single currency.
Panama, Ecuador and some Latin American countries suffered a severe inflation take dollarization in which they use dollar as their currencies.