...················································································································ 3 Malaysia ··········································································································· 4 Philippines ········································································································ 5 China ················································································································ 6 http://www.jri.co.jp/english/periodical/asia/ January 2015, No.166 ASIA MONTHLY REPORT Topics Korean household debt total expanding The economic stimulus measures announced by the South Korean government in July, 2014, included a substantial easing of housing loan restrictions. Bank of Korea also fell in step with the government and lowered its policy interest rate twice. As a result, the expansion of household debt has been reined in. ■ Household debt total 1,060 trillion won ＜Household Debt＞ It has been pointed out for some time now that the （Trillion Won） Household debt burgeoning household debt total constitutes a potential 1,200 Disposal Income risk factor for the Korean economy. The household debt Household Dept to Disposable Income Ratio 1,000 total passed the 1,000 trillion won mark at the end of 2013, and was 1,060 trillion won in September, 2014. 800 Meanwhile, household incomes have failed to grow apace, due to the failing economy, and the household 600 debt to disposable income...
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...production of oil. After the oil embargo of 1973, when oil prices were high, the king-dom's trade surplus rose, increasing steadily until 1978. This trend continued after the Iranian revolution of 1979 when oil prices rose to new levels. Between 1978 and 1981 Saudi Arabia's trade surplus doubled, reaching a peak of US$82.5 billion. Trade (expressed in billions of US$): Saudi Arabia Exports Imports 1975 29.682 4.213 1980 109.083 30.166 1985 27.481 23.622 1990 44.417 24.069 1995 50.040 28.091 1998 N/A N/A SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999. The surplus declined steadily throughout the 1980s as export volume diminished and oil prices fell. By 1985, the balance of trade had fallen to just US$7 billion. In 1990, Iraq invaded Kuwait, prompting the United Nations to place an embargo on Iraqi oil. The cut in supply sent prices back up, and as Saudi Arabia heightened production to meet world demand (from 5.1 million b/d in 1989 to 8.2 million b/d in 1991), export revenues increased and the trade surplus rose once again. In 1996, export revenues exceeded import expenditures by US$35.3 billion. In 1998, the world economy slowed. At the same time, oil production by both OPEC and non-OPEC members increased. The higher production levels coupled with lowered demand caused the price of oil to fall by almost US$7/barrel, from US$19.12/barrel in 1997 to US$12.76/barrel in 1998. In Saudi Arabia, oil receipts...
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...1 Oil’s Troubled Water British Petroleum (BP) is one of the biggest oil and gas industry in the world. They owned 21,000 services stations worldwide and their brand is most trusted in the world. Then an incident occur in 2012, where BP Deepwater Horizon oil rig has exploded that causes 11 deaths and oil slick at the Gulf of Mexico. BP is being fined billion of dollar by the US government and need to compensate the others that affected by it. 1.1 Political Factors Most of the oil reserved in the worlds are owned by the nation government. Due to the incident, BP is under pressured by the huge fined and they are lacked of expertise in solving this problem which is a political for them. Not only US government are involved but other oil industries in the incident area are also affected which it’s going to be a huge threat for BP....
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...Crude Oil Summary; Back in February 2014, oil-price.net posted an astonishing report on the US government's trade restrictions on its own oil industry. While other governments protect their home industries and give preference to their own national interests, by a convoluted path of logic, successive administrations in the US stymied the producers of crude oil in the USA. You can read that full report here: Oil Export Ban Hurts US Oil Industry. However, moves are now afoot to ease this restriction. By one method or another, the crude oil export ban may be undermined to the point that it is meaningless. This is one more battle in the war between US oil producers, who want the export ban lifted, and US oil refiners, who want to keep the ban. The battleground is the definition of what constitutes "crude" and "refined" oil. Introduction; The export ban on crude oil was put in place following the oil price shock of the 1970s. Arab governments held the Western world hostage by restricting their oil exports and hiking the world oil price. US legislators vowed to insulate their nation from future actions by Middle Eastern governments and put in place a series of measures to ensure a constant supply of oil to US refineries. The crude oil export ban was just one of the measures contained in the Energy Policy and Conservation Act (EPCA) of 1975. However, the measure skewed the oil trade within the USA greatly in favor of the refining industry who were allowed to import...
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...companies consistently has to make manufacturing improvements to keep the business competitive. This requires additional capital expenditure which tends to eat up company's earning. On the other hand if no one else can provide products/ services the way you do you have a monopoly. Lets try to explore these points in more detail. Look at the current senario, the small car market in India is very competitive with players like Maruti Suzuki, Tata Motors, Huyndai etc. which was preety much dominated by Maruti. But with launch of Nano the 1 lakh car the whole momentum of the market has shifted. Now to be competitive in market other companies have to either slash rates of their existing model or have to go back to the drawing board and build again. Now look it from Tata Motor's perspective what price they had to pay to gain such advantage. Building new production plant, raw material & equiptments, labor etc. which accounts to huge capital...
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...The Hebrew calendar determines the dates of Hanukkah. Hanukkah begins on the 25th day of the Jewish month of Kislev, and concludes on the 2nd or 3rd day of Tevet. Kislev can have 29 or 30 days. These dates correspond with late November through late December on the nonspiritual calendar. According to the Hebrew calendar, Hanukkah starts at sunset on 16 December 2014, 6 December 2015 and 24 December 2016. During the year of 2013, Hanukkah started at sunset on 27 November 2013. The American holiday Thanksgiving Day, was on 28 November 2013 during Hanukkah. This was the third time Thanksgiving occurred during Hanukkah since President Abraham Lincoln declared it a national holiday. This incident occurred last in 1899 and is said not to occur again in the foreseeable future based on the Jewish calendar. The definition of the Hebrew word Hanukkah is dedication. This definition prompts us to realize that the Jewish holiday memorializes the re-dedication of the holy Temple in Jerusalem after the Jews successfully took conquered the Greeks in 165 B.C.E. The Jewish Temple was taken over in 165 B.C.E. by Greek military and devoted to the reverence the god Zeus. The takeover was an unexpected defeat for the Jewish people, and they feared to retaliate. The Syrian-Greek emperor Antiochus ordered all Jews to worship Greek gods and informed them that any observation of the Jewish religion would be a crime punishable by death after 167 B.C.E. The order established by the Syrian-Greek emperor...
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...The case study includes plenty of reasons why internal and external factors had an impact on the development of the automotive industry. To figure out why that’s the fact we need to have a closer look on the textual information. In the beginning of the 70s American automotive companies had to face challenges. First of all there was the oil shock between 1973 and 1979, which increased the fuel price. Secondly they had to find ways out of internal challenges like troubled labor relations. Accordingly there was a decline in the demand for trucks as well as for minivans, which led to financial problems for the companies. To help the automotive industry not to get broke the US government exempted truck-based vehicles from fuel-economy regulations and as the oil price decreased again Detroit was making huge profits due to large sales. Unfortunately that did not last that long. As the oil price increased again in 2001 the fortune of the enterprises shrunk again and in 2007 they had to face an economic slowdown. On the basis, that many automotive companies weren´t able to cut their costs fast enough, there was a shedding of more than 100.000 jobs and the shout down of factories. The entities just couldn’t keep up with the steadily declining market for new cars and trucks. There was no demand for pick-ups, not from private households as well as not from home constructions. But not only changing requirements on the market stressed the automotive industry. There was also an increase...
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...struggle between purchasing American items at a higher price versus foreign products a lower price was a common one. This problem created several questions from the American public. Should the government be putting restrictions on cheaper goods imported into the U.S. in order to save jobs? Or should they encourage importation so that people can continue to afford products? The answer might be surprising to some. Limiting importation would hurt the United States economy more than it would help. In 2012 the United States imported $2.334 trillion worth of imported products. This number was up 7.8 percent from 2008. Oil and machinery topped the list, clocking in at over 33 percent of total imports. China imported the most goods, at 19 percent. America’s largest retailer, Wal-mart, imported $235 billion worth of goods in 2006. The effect this had on American employment was colossal. Over 1.8million jobs were eliminated between 2001 and 2006. Unfortunately this is typical of American businesses. They will import to receive a cheaper price, therefore eliminating jobs in the American workforce. However, importation isn’t always a bad thing. The U.S. participates in free trade, “or the flow of goods and services over borders unhindered by government-imposed restrictions.” (Steiner, 410) Free trade works because it allows countries to specialize in what they can produce the most efficiently. This allows them to...
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...MFI 442 International Finance-Individual Assignments I Name Institution MFI 442 International Finance-Individual Assignments I Most corporations expand beyond their local boundaries to become multinationals. There are myriad reasons behind this (Wells & Wint, 2000). The biggest of all these reasons is to gain access to international markets and perhaps invest in economic zones that have high investment returns as compared to home countries (Fu, 2000). The trend of globalization has made most firms become multinational corporations. The most common method for MNCs is through franchises (Jones, 2005). In line with this, economists have put up theories explaining why businesses expand beyond their national boundaries (Hicks, 2000). My primary objective in this paper, therefore, is to discuss international finance and other macroeconomics policies. To foresee this goal, I will delve into foreign exchange market and operations of multinational corporations (MNCs). Theories Explaining Why Corporations Expand to become Multinationals a). Financial economists have brought forward three key arguments that enumerate why companies expand their operations to global markets. These theories are; the imperfect markets theory, the comparative advantage theory and the product cycle theory (Levi, 2004). i).The Comparative Advantage Theory This theory is among the most important concepts in international trade. It states that economic welfare increases when countries specialize...
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...1. Case summary: Russia used export taxes on oil after the fall of Soviet Union which caused a huge GDP declined. After that the new Russian government freed most consumer and producer prices and this abolished the state foreign trade monopoly. The export and the value add were proven as the largest sources of tax revenue for the Russian. Government reduced income tax after implementing this strategy. This strategy accelerate the GDP increase and the budget revenue doubled from 12%-24%. Only for this reason Russian fiscal balance had shifted from a deficit of 6% to a surplus of 9% of GDP. These proved that in Russia export duties and other taxes on energy producers provide the largest sources of tax revenue which is centralized in the federal budget. Major Problems with the Oil Industry In 1991, after a long period of economic and political stagnation, the Soviet Union collapsed. The energy industry contracted along with the rest of the Soviet economy. Oil production in 1996 was less than 6 million barrels a day – about half of pre-1990 levels. This contraction was partly due to the overall slowdown in the Russian economy that caused a decrease in energy demand. The energy sector also suffered because of the inefficiencies inflicted upon the Russian economy during the administrative-command system of the Soviet Union and the reluctance of post-Soviet governors of Russia to implement policies that would remedy these inefficiencies in an era of otherwise open market conditions...
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...Assistant Secretary, ICAI, New Delhi) Introduction Depreciation refers to a fall in the value of the domestic currency which is caused by the demand for foreign currency exceeding its supply in the market. In such a situation one has to pay more than before to get units of foreign currency. This fall takes place in the market and on its own. Market determined exchange rate serves the purpose of aligning the domestic economy with the world economy was the price route. As consequences the domestic price gets linked up with those of the world price. With the liberalizations and globalization of the economy in recent years, imports are bound to increase. The lessening of restrictions on imports and lowering of tariff on imports which the economic reform implies, an increase in imports has in fact taken place. Again with trade having become an important element of the new strategy of growth. India got freedom from British rule on Aug 15, 1947. At that time the Indian rupee was linked to the British pound and its value was at par with the American dollar. There was no foreign borrowing on India's balance sheet. To finance welfare and development activities, especially with the introduction of the Five-Year Plan in 1951, the government started external borrowings. This required the devaluation of the rupee.- After independence, Indian choose to adopt a fixed rate currency regime. The rupee was pegged at 4.79 against a dollar between 1948 and 1966. India faced a serious balance of payment...
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...Nolan Barraza Mrs. Avner Eng 100 November 29, 2012 The Possibilities What could the United States do with an extra 7.7 billion dollars? How could the nation get this much money in one year? The legalization of marijuana would bring such profit. Replacing “marijuana prohibition with a system of legal regulation would save approximately $7.7 billion in government expenditures of prohibition enforcement --$2.4billion at the federal level and $5.3 billion at the state and local level.” (Miron). The money generated from this could be used for so many needs of the nation. For example, one immediate use would be to help restore the foundation of bridges and roads. The United States economy is currently suffering and the simple act of legalizing marijuana would help stimulate the economy. This act also will help struggling citizens with life threatening conditions reduce their suffering. There are numerous benefits to legalizing marijuana including eliminating a portion of the wasteful War on Drugs, stimulating the United States economy, and helping many patients relieve their pain. In order to truly understand the benefits of the legalization of marijuana, it must be discussed why it was made illegal in the first place. In 1914, the Harrison Act “represented the first time drug use had ever been defined as a crime” (Goodwin 42). This law set the precedent for twenty-seven states to make marijuana illegal. There states made marijuana illegal because they mistrusted the incoming...
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...The History of Offshore Oil and Gas in the United States In looking at the history of offshore drilling for oil and gas, it has been a long and grueling process that has revolutionized the industry in its own. Beginning in the 1890s, oil companies have drilled wells in the ocean, but from wooden piers connected to shore. It wasn’t until the 1930’s, that Texaco and Shell Oil deployed moveable barges that were not considered ocean worthy to drill in the South Louisiana marshes. After years of trial and error, in 1938 the first offshore well was constructed by a construction company known as Brown & Foot for two independent oil firms known as Pure Oil and Superior Oil. The well was built in a field known as Creole Field and was considered the 1st offshore drilling site ever constructed. With this drilling site in operation, business opportunities for independent contractors and large oil companies developed with large research development programs in charge of finding new geological environments. With the vast amount of land being unused under the water, oil filled land would revolutionize the future of oil production, and flourish in record breaking profits. It is predicted that the largest hydrocarbon reserves and production during the next several decades will likely come from offshore drilling in deep water beyond 3,000-foot depths. With the offshore drilling and production industry just beginning it was unclear of just how successful it would be. In fact, many...
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...therefore waste remains there for longer and is ingested by animals or damages the flora of the area. Sustainability involves meeting the needs of the current generation without compromising the environment for those in the future. To ensure these cold environments are cared for sustainably expert organisations have been set up to reduce human impact. The International Association of Antarctic Tour Operators (IAATO) is an organisation dedicated to sustainable development and usage of Antarctica for tourism. Tour operators visiting Antarctica can be members of this association but it is not required. Members of the IAATO are concerned with the careful management or tourism as well as making profits for their company. There are several main restrictions put in place. Boats of over 500 people are not allowed to dock in...
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...and affairs. This piece will compare and contrast different aspects of the wars such as leaders, civilian deaths, physical georgraphy and location. The War in Afghanistan and the War in Iraq have different logistical operations, causes of entrance relations with the local government, and international responses. Both Iraq and Afghanistan have been under great influence from the U.S.A. The U.S.A has been the main country in leading the invasions in attempts to solve the countries economical and political dilemmas. The reason that they entered Iraq originally was that they believed that Saddam Hussein was in possession of Weapons of Mass Destruction .Hussein was also very aggressive to surrounding countries such as Kuwait; he wanted the oil they had. The response to Bush’s invasion was negative and when the C.I.A announced that there was no evidence of any weapons of mass destruction, Bush’s decision appeared even worse. The reason for entering Afghanistan was looked upon more positively.. The Americans wanted to disarm al-Qaeda and stop them from using Afghanistan as base. They succeeded in doing so very quickly and in September 2001 there was an attack on America thought to be carried out by al-Qaeda. This was thought to be as a result of the invasion. The invasion began to be viewed negatively. Iraq is located in the middle east is largely land locked apart from a small stretch of coast. Afghanistan is completely land locked and is surrounded by very troubled countries...
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