Eminent Scholar

Week7:Eminent scholar.

Hello! How are you? I have had cold since last week and I have been suffered by it. It is serious for person in single life to catch a cold so please be careful not to catch a cold. This time I introduce you about eminent scholar in economy. Do you know anyone who is eminent in economy? I introduce three big economic scholars and a famous Japanese one.

First, he is Adam Smith.

 There may be many people who know him because the study of political and economy in high school, he is dealt with. He was born June 5 in 1723 and he died July 17 in 1790. He was from Scotland and he is economist, theologian and philosopher. Most important his work is “An Inquiry into the Nature and Causes of the Wealth of Nations” (“国富論”in easily Japanese) and he was called “the father of economics”. From 2007, he have been used on 20 pounds bill published in bank of England. 

In the past, 50 pound bill published in Clydesdale bank, Scotland use him similarly.

Second, I introduce you John Maynard Keynes.

 He was born June 5 in 1883 U.K. and he died April 21 in 1946. He graduated from university of Cambridge. He is one of most important mans in 20^th century and represent economist. He lead Keynes circus based on the effective demand, and macro-economics were made by him. He was pupil of Alfred Marshall who was economic owner, the opponent “Arthur Cecil Pigou” is his brother and his father “John Neville Keynes” is also economist. His famous theory “The general theory of employment, interest and money ”(“雇用・利子および貨幣の一般理論” in Japanese ) in 1935-1936 proved the course of voluntary unemployment because of lack of effective demand.

 Third, This picture is Karl Heinrich Marx.

He was born May 5 in 1818, Germany and he died March 14 in 1883. He was philosopher and thinker, and is widely known as theoretical leader of communist movement and the labor movement after the 19th century, and an economist, and he was one of the most influential thinkers in 20^th century. With not only his close friend but also his comrade “Friedrich Engels”, they made scientific socialism as comprehensive view of the world and revolutionary ideas and explained the necessity that after advanced development of capitalism, the society of communism will come. Marx’s analysis of capitalism based on criticism of economic became “The capital” (“資本論” in Japanese) which is most important his work and the economic system depending on “The capital” is called the Marx’s economics. 

Last, I introduce you about famous Japanese economist.

 Do you know him?He is Takashi Kadokura. He was born October 30 in 1971, Japan. And He graduated university of Keio and is known as authority of the economics about under the ground. Until 2005, He was the chief in economic research department of economic laboratory from Daiichi-Seimei (一生命経済研究所経済調査部). After the work, he became representative in economic research institute of BRICs. From 2009, He has appeared on TV program “Honmadekka-TV” (ホンマでっかTV). Many people in Japan watch the TV program because it is very popular. So in the TV program, he became popular. His character is so unique that in it, he is made a fool a little but you must not misunderstand, he is also very famous scholar in economics. Thank you for reading my blog!

Economic profits and territorial disputes

Week 6

Economic profits and territorial disputes

 

Hello! From this time, the latter half of my blog “Japanese economy” begins. When I began to write this blog for the first time, this work is so hard and takes very long time, but through five times of the experience, I was used to gradually writing this blog. So, I do my best successively from this week.

 This time, I will write about relations of the economic profit and territorial problems. Japan has some territorial problems. Senkaku Islands, Northern Territories and the island of Takashima are disputed and became political problems between Japan and China, Russia and Korea. Why are their lands so important?

 There are some reasons some countries insist. First, those islands has property value themselves. Second, Exclusive economic zone (EEZ) are related. Do you know EEZ? The following is EEZ.

 An exclusive economic zone (EEZ) is a seazone prescribed by the United Nations Convention on the Law of the Sea over which a state has special rights over the exploration and use of marine resources, including energy production from water and wind. It stretches from the seaward edge of the state's territorial sea out to 200 nautical miles from its coast. In colloquial usage, the term may include the territorial sea and even the continental shelf beyond the 200-mile limit.

 (Reference Wikipedia: http://en.wikipedia.org/wiki/Exclusive_economic_zone )

Third, the right of oil resources are related. In particular, this is related to the problem of Senkaku islands between Japan and China. This time, I will introduce you this problem minutely in eyes of Japanese side.

The following picture is Senkaku Islands.

1. 

It is islands located in westernmost end of southwest islands and it is including the north islet (北小島), the south islet (南小島), the Kuba island (久場島), the Taisho island (大正島), the rock of okinokita and okinominami (沖ノ北岩、沖ノ南岩), Hise. (飛瀬). The position of those islands is following.

  

As historic process, after WW2 the territory in Japan were legally decided in San Francisco Peace Treaty, April,1952. The Senkaku Islands was put under U.S.’s administration as a part of southwest island based on the 3rd article of the treaty. The islands were contained in the area that was returned to Japan from U.S. in agreement for the return of Okinawa, May, 1972. So the Senkaku Islands compose part of southwest island that is included Japanese territory. Because of above reasons, Japan has insisted that these islands are Japanese territory. But, 1970’s, Chinese and Taiwan government began to insiste on their opinion about the islands. This is because in 1968, the agency of the United Nations investigated the possibility of oil deposit in the East China Sea and the fact that a lot of oil was deposited was discovered. Japanese government says that the insistence is wrong because the historic, geographic and geologic evidence that Chinese and Taiwan government refer to are not effective to its become effective for international law.

 Above explanation is about problem of Senkaku Islands. But this explanation is in eyes of Japanese side. Of course China have original insistence differ from Japanese ones. So I don’t know which insistence is really true. I live in Japan and I get only effective information for Japan. I hope that this problem to be solved with each countries’s assent. Thank you for reading my blog!

Japan and World Economy

Week 5

Japan and World Economy

 

Hello! I maybe have a cold now. I feel so tired but do our best this time too. This time I introduce you Japan’s trade with many other country. Particularly, this time, I introduce you trade between Japan and America. At first, I tell you surprising information. Economy of Japan and America occupy about 30% of world economic activities. So cooperating between Japan and America closely and develop their economy together is necessary for not only the two countries but also other countries of the world to develop sustainably. Are you surprised? Of course, I was surprised when I know this at first. But there are some problems between the two countries. This time, I will introduce you one of Japan-U.S. problems “Trade friction”. What is trade friction? Trade friction is the problem that arise from extreme deflection of relation of import and export. It is believe that disproportion of economic income and expenditure affect domestic economy badly.

 After world war 2, the higher international competitiveness of Japanese economy the more things are exported from Japan to America. Japanese exportation is so many that it damage American industry. So the issue of trade became political problem and was called “Japan-U.S. trade friction”. This is the beginning.Thereafter, there are things which was dealt as “Japan-U.S. trade friction” (In 1950’s is textiles, 1960’s is steel product, 1970’s are color TV, car and industry of high-technology, 1980’s are semiconductors and VTR .) and some agreements are made. One of agreements regulate Japanese exportation.

 International trade is zero-sum game like mahjong. This means that one country get profit, another country go into the red.  For example, in America 2006, The sum of exportation from Japan was about 17 trillion yen, that of importation from Japan was about 8 trillion yen. So the sum of trade surplus from Japan was about 9 trillion yen. In 2006, the sum of American trade deficit was about 90 trillion yen, so that of exportation from Japan occupy about 10% of American trade deficit.

 Of course Japan has corresponded this problem to make the bad situation better. I write above, Japan regulate exportation. In 1985, strong yen was instructed to decrease the amount of exportation from Japan. And Japan produce and sell car in earnest in America because the sum of Japanese exportation doesn’t increase in trade statistics, in1993 local production number became higher than export number. (400)

 Why has this problem been unsolved yet? This is because the saving rate of Japanese people is high. This is characteristic of Japanese and also this means that the rate of Japanese consumption is low so this causes increase of exportation. But I think there is big cause. Japan have depended on America to security of own country. (in Japanese “安全保障”) So Japan cannot say what Japan want say really to America and America have insisted that Japan have made the cause of trade deficit.

TOYOTA

Week4: About Japanese big company

Hello! A happy new year! Did you have a good time during your winter vacation? I spent very funny time during my winter vacation. I went to Simoda to see the first sunrise of a new year. This is the picture.

Thank you for reading my winter vacation story and picture. But actually this time I have to introduce Japanese big company, so I will write about “TOYOTA”.

TOYOTA

 Of course I think you know TOYOTA. It is one of Japanese big company .

This is one of TOYOTA’s car “PRIUS”. Today, we can see TOYOTA's car not only in Japan but also abroad. Many people around the world use TOYOTA’s car. Why? This is because TOYOTA produces many kinds of car. To produce many kinds of car (low price, SUV, high quality sedan), the company satisfy many customer to meet their needs. And the company have abundant financial resources. Abundant financial resources are person, things, money and know-how, they are very strength of TOYOTA. Because TOYOTA have them, it can advertise itself widely, do high quality research and development and have good sale channels and customer’s services.

 TOYOTA has original production method which is created by excluding waste thoroughly and pursuing rationality of process of production. This is the most one of strength of TOYOTA. This is called “Method of just in time” and known and studied around the world. Also the production method is being affected the idea that when it produce defective articles, the machine which produce things stop promptly and avoid producing defective one. This idea called “Automatic”. Original production method including “Just in time” and “Automatic” made customers satisfied.

By the way, do you know TOYOTA also create robots? In order to create robots that have gentleness and wisdom and support human’s lives various situations (medical, care, welfare, movement, work…).I will introduce some robot of TOYOTA with picture.

This is the robot which support people who have disadvantage with their foot. This robot is put on one legs and support them to rehabilitation. After rehabilitation it support various scene in everyday life in order to make their life activity and freely.

This is Robina. Robina is 120cm high and weigh 60kg. It autonomy movement, manipulation and communication functions, so it can use fingers and hands to have and bring things, use tools and talk with human. In the future, it will support doctor and care elderly people and is expected to be human’s trustful partner. (400)

This is called “humanoid”. This is partner robot which is gotten close easily by human. And it have adaptability to living environment. With flexible physical ability and complicated technique, humanoid can move like real human. Of course it can use tools. In the future it will help house work and support human’s everyday life. Also, it can play trumpet and violin. This is required much delicate movement for lips or fingers so it is very surprised for me. There are some animations about TOYOTA’s robot including these three on the web site of TOYOTA.

http://www.toyota.co.jp/jpn/tech/partner_robot/concept.html

If you interested in these robot, it is better to see the animations.

 In addition, TOYOTA contribute to grovel warming or social activity, and have sport teams (rugby football, basketball… ). Do you know TOYOTA in detail? Because I am from Aichi and the head office of TOYOTA is in Aichi, this time I picked up this company. Thank you for reading. 

The present situation of Japanese economy.

Week3: The present situation of Japanese economy.

Hello! This time I am going to presentation you about present situation of Japanese economy. It is very difficult to presentation this topic only one week. This is because there are many criteria to judge situation of economy. So this time I will introduce you something.

What is GDP? Of course you know this but this time I realize GDP and compare Japan with other countries.

Under an economic theory, per capita GDP is correctly equal to per capita gross domestic income (GDI) .

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living; GDP per capita is not a measure of personal income.

(I refer above. URL:http://en.wikipedia.org/wiki/Gross_domestic_product )

GDP has like a definition (above paragraph ), but it express difficultly. So I say in other words simply. GDP is an index that express how a country richly. Things or service that are produced by a country in a year express how the country is rich. Today in Japan, domestic total price of production is about 930 trillion yen including the price of middle product. For example, middle product is like tire or engine of car. (Tire or engine constitute car and car is last product.) The price of middle product is included in the price of car. So the sales of companies producing middle product is not considered when we calculate GDP in order not to double calculation. Generally, today we can judge how rich a country are about economically and the higher the value of GDP is, the richer the country is. When GDP is higher than 3,500 dollars per one, more and more people buy a car, when GDP is higher than 10,000 dollars per one, the country is almost a developed country.  In the ranking of nominal GDP, Japan is 3^rd so generally, we can consider Japan to rich country and the most rich country is America.

But at present we often use GNP because there are many Japanese companies around the world. GNP is expressed as numerical formula: GNP=GDP-net income from abroad. I write above there are many criteria to judge, GDP and GNP is included it and many other criteria are included too.(365) In addition, to judge that the state of economy is good or not, we use the economic growth rate. It is expressed as numerical formula: {(GDP1-GDP0)/GDP0}×100.(G0 is one year older than G1.) Using this criterion, we can know how GDP change in a year.

  
 Japan is concluding some agreement for example EPA or FTA and so on. EPA is economic partnership agreement and FTA is free trade agreement. But today in Japan, TPP is attracted our attention. TPP is free trade agreement and is conclude with country in Asia-Pacific region. If Japan conclude this agreement, it will must affect Japanese economy. The affection is good or maybe bad. TPP include some problems and related to a lot of things. This topic may be difficult for university students like us but I think our Japanese must know about TPP problems. So if you are interested in this problem this time, it is better to study TPP in detail yourself and have your own ideas

Economic history of Japan

Economic history of Japan

Hello ! In this week, I will introduce you about Economic history of Japan(period after war). You look at graph of the inflation-adjusted economic growth rate of Japan below. In this graph, you know roughly when Japanese business conditions is good or bad. And this time, I explain you some occurrence in this graph to understand you how they influence had an effect on Japanese economy.

The period revival after World War Ⅱ(“戦後復興期” in Japanese).

August 15th in 1945, Japan was defeated in World WarⅡand the war was finished. Japanese lose two millions people and 25% of national land. So, to help to revive Japanese economy, GHQ do reform called “three major economic democracy reform”.

1 Agrarian reform: To stabilize life of farmer, landowners bought agricultural land from a nation and selled it cheaply to farmer.

2 Dissolution of the zaibatsu: Make the antitrust law and prohibited holding company and four major zaibatsu divided into some hundreds companies.

3 Upbringing of labor union: To improve wages standard of labors and labor circumstances.

 Common point of these three policy is that GHQ thought that the causes of World WarⅡwas the situationof poor life of Japanese. So they could not buy product, big companies in Japan invaded other countries because they bring up their sales. By stabilized life of Japanese, this problem was improved because big companies sell their products to Japanese, GHQ thought. So these three policy was done in this period.

The period of rapid economic growth(“高度経済成長” in Japanese.)

 In this period(1955~1970), Japanese economy growth is the most marvelous in the world for 15 years. This period called rapid economic growth and mainly this period divide into four business conditions.

Business conditions of Zinmu(1955~57,“神武景気” in Japanese):There was boom of durable consumer goods, refrigerator, washing machine and black and white TV are called “三種の神器(sansyunozingi)”.this Japanese word means three kind of goods of god. Supermarket Daiei was opened.

Business conditions of Iwado(1958~61,“岩戸景気” in Japanese):The prime minister Yuto Ikeda announced the plan that people in Japanese’s would get double amounts of their ordinal income.

 By new technique was imported from abroad and the scale of company expanded, the two business conditions above is caused.

Business conditions of the Olympic(1964,“オリンピック景気” in Japanese):In this year, Toumei expressway was opened for traffic. This prosperity was caused because public enterprises for the Olympic in Tokyo was increased.

Business conditions of Izanagi(1965~70,“いざなぎ景気” in Japanese):Color TV, cooler(air conditioner) and car these of three called 3C was born in this period, and Japan GDP was second highest in developed countries. Heavy chemical industry includes shipbuilding, steel, petrochemistry had international competitiveness and amount of exportation is increase, this prosperity was caused.

A crisis of petroleum(1973, “石油危機” in Japanese).

 In 1973, fourth Middle East War happened between Israel and the counties around Arab countries. Then, OPEC many Arab countries belonging raise the price of petroleum to win the war and decided to inhibit export petroleum to America because America supported Israel. As a consequence, the price of petroleum marvelously rose, many countries including Japan economically confused because of lack of it. As you know from above graph, its value is down in 1973.

 Japan revival thorough various situations and occurrences. This week, but I explained a few of period in Economic history of Japan, this period is very important for now Japanese economic situation. I introduced above roughly, so if you interested in this field I introduce, you study economic history of Japan in detail yourself. Next week, I will write about present situation of Japanese economy.

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Overview of econom

I will write about contents which are related to Japanese economy for 10 weeks. It may be difficult for me to complete this blog, but I think I will stick it out! The first week content is overview of economy.

First: definition of economy.

Economy is the system which adjust activity of production or indicate the production itself. This express is very abstract so I will express more simply. Economy is the system which exchanges between money, thing, and service and the system follow rules including a low and custom of business. We get money from income that we have earned, save, profit that we have invested and constantly income of real estate and finance …and buy various merchandise or service.  

Normally, in a capitalistic economy, We have to work to get money. Expressing concretely, because people have to produce things and service that exchange to money to keep a family budget, most of Japanese is both a producer and a consumer.  But some of them are directly laborers, in this case, they have assets(real estate , bill that have value,… )that produce regular income they get without working or property that can make them living. And other some people invest their capital to increase their income. Some laborers not produce things or service directly but invest or finance money or are engaged in bank or the finance.

 Not only personal people do economic activity between they and enterprises but also the government use the system of tax or national debt and gather money and draft the national budget. Government and a local self-governing body distributes national budget to a public institution and economic activity to promotes increasing of profit and safeness of society. The bank of Japan save inflation and deflation from extraordinariness by policy of finance and do adjustment of interest to sustains the situation of economy smoothly.  

 A tax is used for mutual help or social security to reduce nation’s bear in those field that have high publicity, for example: education, medical treatment, nursing and welfare . And it is used for the police for peace preservation, action of national defense for national security, diplomacy… in a word, it is used variety field.

Second: derive.

The word “economy” comes from “οικονομία” in Greek. “οικος” means house,

“νομος” means a low or a custom. So the word “economy” originally means handle of things when we treat a family budget. But now, because “economy” treats matters of national reign, “economy” has a little different meaning.

The word economy in Japanese “ 経済 ”comes from China in tousin era.

Third: kinds of economy.

I will explain about three kind of economy( Traditional economy, Market economy, Planned economy) easily.

Traditional economy

Main economic activity( producing, distribution…) is provided by custom or tradition. For a tendency, it exist in relatively small group like village.

Market economy

Enterprise or individual produce things with the thought that individual profit is most important, things are distributed by system of market.

Planned economy

Central authorities manage all economic activity. In many case, this kind of economy is used in socialism. For example the era of Soviet, planned economy was used.

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