5-4 What are the potential costs of adopting a free trade regime? Do you think governments should do anything to reduce these costs? What?
▲ 기술수준 차이를 극복하는 비용
- 후진국의 입장에서 보면 어떤 산업에 비교 우위가 있다고 하자. 그러나 절대적인 기술 격차가 있어서 선진국의 기술 수준을 따라 잡지 못하는 현상이 있을
trade has become a “staple” for many investors. One of the most popular forms of the strategy exploits the gap between US and Japanese yields. Anyone borrowing for next to nothing in yen and putting the money into US Treasuries (US government bonds) has received a double pay-off: from an interest rate difference of more than three percentage points and from the dollar’s rise against the ye
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
global company. Most of all, GE has a long history of counter trade, using commodities in return for payment and also a special department for it.
provide a trade financing alternative
LDCs(the less developed countries) and
MNCs(multinational corporations) with access
to new markets
fit with the resurgence of bilateral trade agreements
between governments
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.