Japan, South Korea, Taiwan

8/8/2019 Japan, South Korea, Taiwan

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Japan, South Korea,Taiwan

A Trade Relation

Presented by:

Saloni Mohta Rohit Krishna

Saptarshi Ra

Yuvraj Mathu

CALCUTTA BUSINESS SCHOOL


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A BRIEFHISTORY

ANDINTRODUCTION


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Merchandise exports started in 1960 with $4.1 billion

After that it grew at an average annual rate of 16.9% in the

1960s

In the 1970s it grew by average annual rate of 21%.

In 1965, Japan's nominal GDP was estimated at just over$91 billion.

By 1980, the nominal GDP had soared to a record $1.065trillion

JAPANExponential growth from 1960s to

1980s


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JapanImport Scenario

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Chart Title

It imported about 85% ofits total energy needs(including all of itspetroleum and 89% of itscoal) and nearly all of itsiron, copper, lead, andnickel.

It also imported foodmaterials.


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IN 1970 Quality of product of Japan became excellent.

It was cheaper than USA goods.

It increased demand of Japanese goods.

Japanese steel, ships, watches, television, receivers,automobiles,

semiconductors captured the USA market. textiles occupied more than 30 percent of Japanese exports in

1960

Iron and steel products, which had grown rapidly in the 1960sto become nearly 15 percent of exports by 1970.

exports of motor vehicles rose from under 2 percent to over 18percent of the total.


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SOUTH KOREAExponential growth from 1960s to

1980sGross National Product increased from US$3.3 billionin 1962 to US$204 billion in 1989

Per capita annual income grew from US$87 in 1962 toUS$4,830 in 1989

Manufacturing sector grew from 14.3 percent of theGNP in 1962 to 30.3 percent in 1987

Commodity trade volume rose from US$480 million in1962 to a projected US$127.9 billion in 1990

ratio of domestic savings to GNP grew from 3.3

percent in 1962 to 35.8 percent in 1989


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SOUTH KOREAWhy this rapid growth?

1960s adoption of an outward-looking strategy

poor natural resource endowment

low savings rate

tiny domestic market

economic growth through labor-intensive

manufactured exports

inflow of foreign capital

rural sector relatively underdeveloped


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TAIWANExponential growth from 1960s to

1980sBetween 1952 and 1982, economic growth was on average8.7%

Gross national product grew by 360% between 1965 and1986

percentage of global exports was over 2% in 1986

global industrial production output grew a further 680%

between 1965 and 1986

49% exports to US in 1984

Trade increased more than 5-fold in the 1960s, nearly 10-

fold in the 1970s, and doubled again in the 1980s


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TAIWAN

Global market access by Japanese companies andAmerican importers

No MNCs or huge conglomerates

Most development due to flexibility of familiarcompanies

Contribution of the State

labor-intensive manufactures to expansion of heavyindustry and infrastructure to advanced electronics

Mainly export-oriented hence vulnerable todownturns in the world economy


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SOUTH KOREA AFTER1980

v STABILITY

1990s

2000s


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Industrial Policies

Revenues and Expenditure

Export and Import policies

GOVERNMENT ROLE


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INDUSTRYEnergyService IndustryTourism

LABOUR FORCE

Labor movements in 1980s.Recent Trends

SCIENCE &

TECHNOLOGYHistorical DevelopmentHigh Technology


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TAIWANECONOMIC DEVELOPMENT

Handed Over To Kuomintang (KMT)

Average Annual Economic Growth Rate 9.21%

Taiwans Industries Maintained Average Annual GrowthRate Of 14%

Growth declined from 14% to 7.52%

Annual growth rate rose to 16.5%

Foreign trades importance in Taiwans Economic

Development


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CURRENT STATUS

One of the fastest growing economies

January 2002, Taiwan joined the World TradeOrganization (WTO)

Exports increased by 6.29% to 130.6$

Imports grew by 4.94% to hit $112.5 Billion


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Exports to US totaled $26.8 billion in 2002,resulting trade surplus of $8.63 BILLION

Association of South East Asian Nations(ASEAN)

Exports to ASEAN countries accounted for 12.2%of Taiwans total exports

Taiwans import was $112.5 billion, 4.94% morethan the preceding year


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TRADE RELATION WITH JAPAN

Vertical division of labor of product

Horizontal Division

East Asia Businessmans conference

Foundry System


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TAIWANFuture Plans

Foreign trade, behind rapid growth during thelast 40 years.

Remains export oriented

Faces challenges from thriving ChineseEconomy.


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JAPANScenario after 1980

From 1980,the growth of Japan started climbing down.

From 1981 to 1988, however, export growth averaged11.3% per year, about one-half the level of the 1970s.

Import growth lagged far behind exports, at an averageannual rate of only 2.9% from 1981 to 1988.

The country imported, for example, 50% of its caloric

intake of food and about 30% of the total value of foodconsumed in the late 1980s.


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JAPANREASON FOR DECLINE

Japan could not get rid of oil shortage.

OPEC countries increased price of oil from1.7$/Barrel to 11$/Barrel.

In the first half of 1990s,Inflation rate in theworld became higher.


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JAPAN Economy depends on the US Economy.

In 1990 their combined gross national product (GNP) totaledabout one third of the world's GNP.

Japan received about 11 percent of United States and theUnited States bought about 34 percent of Japan's exports.

Japan had US$148 billion in direct investment in the UnitedStates in 1991, while the United States had more than

US$17 billion invested in Japan.

Japan army is under control of US Army.

JAPAN-USA RELATIONSHIP


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TRADE RELATION BETWEEN INDIA & JAPAN Japan has now turned up as the

third-largest FDI facilitator in to

India.

India Japan Trade Relations have

helped India to bring in US$ 2,153

million into its domestic market.

Air Service, Culture and heritage, Economic ties, Commerce, Avoidanceof Double Taxation, Cooperation in the field of Science and Technology,Students exchange programme.


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TRADE RELATION OF JAPAN WITH SOUTH KOREA

Of the total direct investment in South Korea from1962 to 1986, which amounted to US$3.631 billion,Japan accounted for 52.2 percent .

Japanese product occupies the major portion ofSouth Korean Market.

From 1997 Japan also entered in the culturalmarket of South Korea.


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CURRENT SCENARIO

Japan started to implementnanotechnology.

They implemented 6 sigma.

They started miniaturization.

Japan becomes second largest economy


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FUTURE PROSPECT

EXPANSION OF NANO TECHNOLOGY.

LOOKING FOR ALTERNATIVE ENERGY.

IMPROVING COMMUNICATION SKILL


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Thank You

Documents

Japan, South Korea, Taiwan