The Global Sourcing Wire Hardness Decision
THE FINANCIAL CRISIS OF 2007- 09, EFFECT ON THE ECONOMY OF JAPAN
Japan is among one of the most rapidly growing economies in the world. The economy is primarily dependent upon the service sector which is highly developed followed by the manufacturing and industry sector. The country is rich in new and innovative technologies which benefit it to endeavour in the competitive era. The overall GDP of Japan in the year 2012 was $5960 billion and the purchasing power parity was $4.617 trilllion representing the stable growth of the economy (Japan Econony 2013)
The economy of Japan experienced a downturn during the year 2007 – 09 when the global economic crisis affected the economic stature of most nations around the world. The exposure to international trade and the extreme pressure of maintaining the role of an intermediary in the financial transactions across nations pushed the economy of Japan towards recession. Although, the Japanese economy was among the last to be hit by recession owing to its specialization in manufacturing goods which are less sensitive to the change in business cycle, less intervention and dependency on small domestic borrowers in the private sectors other than finance, and flexible rules for domestic lending housing market (OECD, 2010). The Government of Japan was much worried about the long lasting effects of the financial crisis rather than the short and substantial effects. The aftermath of the financial crisis on the economy of Japan included: * Steep rise in the unemployment and decline in the number of immigrants. * Contraction of the financial market led to decline in the interest of foreign investors. * The GDP growth contracted to 7.4 percent from 9.6 percent. * The GDP surplus declined to 2.8 percent in 2008 from 15 percent in 2006 and 9 percent in 2007. * The prices of equity declined substantially affecting the asset management business. * The financial institutions in Japan were largely involved in
Japan is among one of the most rapidly growing economies in the world. The economy is primarily dependent upon the service sector which is highly developed followed by the manufacturing and industry sector. The country is rich in new and innovative technologies which benefit it to endeavour in the competitive era. The overall GDP of Japan in the year 2012 was $5960 billion and the purchasing power parity was $4.617 trilllion representing the stable growth of the economy (Japan Econony 2013)
The economy of Japan experienced a downturn during the year 2007 – 09 when the global economic crisis affected the economic stature of most nations around the world. The exposure to international trade and the extreme pressure of maintaining the role of an intermediary in the financial transactions across nations pushed the economy of Japan towards recession. Although, the Japanese economy was among the last to be hit by recession owing to its specialization in manufacturing goods which are less sensitive to the change in business cycle, less intervention and dependency on small domestic borrowers in the private sectors other than finance, and flexible rules for domestic lending housing market (OECD, 2010). The Government of Japan was much worried about the long lasting effects of the financial crisis rather than the short and substantial effects. The aftermath of the financial crisis on the economy of Japan included: * Steep rise in the unemployment and decline in the number of immigrants. * Contraction of the financial market led to decline in the interest of foreign investors. * The GDP growth contracted to 7.4 percent from 9.6 percent. * The GDP surplus declined to 2.8 percent in 2008 from 15 percent in 2006 and 9 percent in 2007. * The prices of equity declined substantially affecting the asset management business. * The financial institutions in Japan were largely involved in
References: Bergsten, C. F. (2012). Congressional Testimony: The Outlook for the Euro Crisis and Implications for the United States Dowling, J. M., & Rana, P. B. (2010). Asia and the Global Economic Crisis: Challenges in a Financially Integrated World European Commission. (1970). Report to the Council and the Commission on the Realization by Stages of Economic and Monetary Union in the Community [Werner Report]. European Council . (1989). Report on the Economic and Monetary Union in the Europan Community [Delors Report] European Council. (2012a). Towards a Genuine Economic and Monetary Union (EUCO120/12) European Council. (2012b). Towards a Genuine Economic and Monetary Union (Interim Report) European Council. (2012c). Towards a Genuine Economic and Monetary Union (December Report) Eurostat. (2012). Extra-Euro area trade by partner and by SITC product group. Retrieved 12 10, 2012, from Eurostat: Harich,J. 2010. Change Resistance as the Crux of the Environmental Sustainability Problem. System Dynamics Review, January