international enviornment exam grid.all countries done

7/28/2019 International Enviornment Exam Grid.all Countries Done

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Factor Detail

Details Rating

Economic Headline

Economy is based on 1) exports and 2) FDI. 2001 WTO

accession catalyzed 3 major reforms - facilitating foreign

enterprise, promoting free trade, and improving legal

transparency and predictablity (see write up, p1)- whichspurred strong growth; now 2nd largest economy after US

PosHigh growth: Forecas

2030

GDP Size, breakdown by segment $7.2T (2nd largest, after US) Growth Rate highest in the

world: 8-9% prior to WTO accession, 10-11% after)Pos

2002: $504B, 2011: $

consumption: 60%, H

Labor productivityAnnual growth rate

(GDP/ppp)

Highest growth rate in world (1995-2005 average 8.43%

annual growth (US: 2.8%)); spurred by migration from rural

to urban areas, FDI brought new technologies and

management practices, massive infrastructure

investments, increased access to international markets

incentivized entreprenuership and investment

PosLow growth rate, ham

workforce (1995-200

Leading industriesGeneral manufactoring (44% of GDP); technology

manufactoring, construction, powerPos

Primarily agricultural

industries; airplanes,

and telecom equipme

them back to commo

Fiscal policyBudget: balanced, surplus,

deficit?2011: deficit (1.1% of GDP) Nuetral

With permanent bud

debt almost 60% of G

borrow domestically,

Exchange rate

controls

Rate? Float freely or

manage?

Fixed to the dollar; large FDI triggered by WTO accession

caused exchange rate to soar; as a result, government

established the China Investment Group ($200B) to invest

in foreign equities. (High rate improved their purchasing

power of foreign assets; however, puts a drag on their

export-based economy

(Mostly) Pos

Late 1990s: Asian cris

Led to 33% crash of B

reserves due to fixed

It remains high, whic

Inflation rate (rate, how

control?)General ly well-controlled inflation rate (3.3% in 2011) Pos

History of high inflati

and continued for ma

Interst rates Generally well-controlled interest rate (6.2% in 2011) Pos Rose interest rates ("

Trade policyTarffs, quotas, and other

restrictive agreements

Promoted export focused economy. WTO reforms

brought about 27% and 24% annual growth in exports and

imports, respectively. Trade surplus grew to $360B by

2010 - China ran a trade deficit with Asian countries but

large surpluses with EU, Japan and US

Pos

Historically (as of 196

dramtically reduced t

international players

for international trad

round, US cotton disp

Nationalization v.s

privatization

Strong state ownership of businesses (Sharp decline over

years to 48% in 2002)Mixed Strong state ownersh

Due to WTO acession: Strong reliance on FDI (FDI exploded

Monetary Policy

Ratings = Postive (+), Negative (-), Mix, NuetralCountry Comparison

China


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SubsidiesGovernment subsidize? If so,

what?

Strong govt subsidies, mostly in SEZs - been highly

effective in attracting business investmentPos

High industry subsidie

owned companiess, w

Economic

regulation

As viewed through recent

global financial crisis

2008: Caused value of Chinese exports and imports to

reverse which shrank ecoomy from 25% growth to -1.65%.

Swift govt intervention was very successful: central bank

cut interest rates, halted currency appreciation, increased

export tax rebate on labor-intensive goods to supportexports. Also invested larger stimulus package than US

and EU, resulting in expanded consumer spending, rapid

investment growth, strengthened agriculture, and by 2009

GDP grew by 8.7%.

Pos

While policies enacte

aggregate demand, t

questionable. Jorge G

Gerdau, explained: L

consumption and get

with our level of savin

problem is cultural; w

themselves out, [but]

years. We do not hav

2010, Armnio Fraga,

warned, Brazils infra

saving and investing e

Natural resources Abundance

Limited abundance - requires signficant importing,

particularly from Brazil, to fuel its export-led growth

strategy and growth in domestic consumption

Neg Strong abundance an

Relationshp with

international

institutions

IMF, WTO, etc WTO accession sparked economic boom PosWTO win againt US co

leader of LATAM; tryi

Government One line headline

High government role in leading growth through

authoritarain control; quickly adoption capitalist

fundamentals; been highly effective in driving growth, but

at high social cost

Mixed

High government role

owned enterprises an

research.

Structure Socialist, democratic, etcSingle party authoritarian republic; communist with

capitalist elements.Neg

From military regime

in 1988). Known for

Protection IP, contracts Extremely weak IP protection, corruption NegWeak IP protection -s

infringement (particu

Security Policing, army, etc Low crime rate; largest military in Asia, #3 in world Pos High crime rate, stron

Backs risk

Back extraordinary risk (e.g.

unemployment insurance,retirment pensions, etc)?

Significant state control assumes risk across several areas,

though a number of services are limited (e.g. pension,healthcare)

Mixed

Backs a variety of ent

unemployment, retir

NGOs Role, degree of reliance

Historically immature sector is now growing, though

government censorship continues to challenge their

progress.

MixedHigh reliance on NGO

degree of NGO influe

International

strategy

Vying to become #1 global superpower. Working with

WTO and other global instutions to improve positioning.

Encouarging high FDI as cornertone of economic

development (mostlylow cost manufactoring). Investingheavily in: a) oversease assets to secure global supply

chain due to high resource importation needs and b)

military to solidify regional and global power

Pos

Aggressively position

developing countriesrelationships with int


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Institutional One line headlineCovered in other sections. Home ownershiop purchased

with personal/family savingsDo you think this sect

How deveoped are its

institutions?

Leading areas

Deficits

How developed is itsinfrastructure?

Improving at an accelerated rate due to high investment,

particularly in SEZs. Rapidly reducing transaction costs forbusiness, though leading to significant envrionment

challenges. Good ports.

Pos Weak infrastructure le

Leading areas Energy (mostly coal), transportation, communications PosPoor all around, thoug

13B more on infrastru

Telecom is lagging but

Deficits Rural, interior infastructure Neg Domestic transportati

Social One line headline

Rising middle class, but enormous inequalities remain

leading to increased tension. Aging population and slow

population growth (due to one child policy) pose

signficant challenges

Mix Rising middle class (30

GINI Coefficient Baseline: US is .477 High income inequality: .48 Neg High income inequalit

WorkforceLevel of skill, blue vs. white

collarLow skilled, still mostly blue collar Neg Low skilled, still mostl

Consumer basePurchasing power, degree of

consumerism

Growing middle and uppper class with strong consumer

culture in urban areas. High savings rate due to concern

for future - this will drag consumption

PosGrowing middle and u

minimum wage, good

Social

strife/conflictReligious, racial, etc

Strong economic disparity, particulary between rich

coastal urban and poor rural farming interior. Perceived

lack of gov't effort to address this leading to significant

social tension - when will the country "snap"?

NegStrong economic dispa

Generous entitlement

EntitlementsQuality of healthcare,

education, retirment, etc

Outdated Hukuo system controlled population movement

to maintain farming population. Skills, capital and

education were required to move to leave farming to

affluent cities. This outdated system is limiting education,

retirment, housing and healthcare access. Economic

reforms led to healthcare price inflation, further

decreasing access and affordability. Govt pensions are

inadequate, with great disparity between urban and rural.

Neg

Poor education; gener

unsustainable. Infring

meds (good from a he

Infrastructure

Maturation of

institutions


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Overall favorability High favorabilty for many businesses High growth potential, but has a num

Business Risk/Challenges

Lack of IP protection, unskilled workforce, poor GINI score

and human rights could lead to social unrest, high state

involvement (e.g. media restrictions), lack of natural

resources, limited access to resources in several key areas

(e.g. business analysis, architecture) (ranked 91/185

easiest place to start a business)

Hi cost of capital and interest rates, p

exports), weak IP protection, regulatio

cost of business, and lower skilled wo

of buerocracy and complex tax code:

starting a new business

Business

Opportunities/Strengths

Signficant incentives for FDI (e.g. SEZs), cheap labor, weak

regulations (this has an eventual downside), high

subsidies; strong work ethics of the workforce, well

organized / highly disciplined organizations, workforce

desire to succeed (learning and becoming stronger

professionally rather than pure career move)

Most interest is based on anticipation

growing economy (now 10th largest, s

resources, agriculture, large populatio

funding and other incentives all pluse

industrial sector in Americas, and clos

one of their leading industries (see ab

China

Learnings: What does each country teach us?

Worth Doing Business?

Open your markets: Key to catalyzing strong GDP growth can be to focus on an export economy and foreign investment

Avoid foreign debt

If lacking domestic innovation, import it through FDI

Trade offs: Policies enabling strong economic growth can come at a social cost, which can backfire. Chinas policies are sending

contrast, Brazil makes heavy social investments but at a high economic cost (note: interestingly, Brazil nonetheless has a higher G

If lacking natural resources, build strong trade relations and purchase foreign assets (e.g. oil production capacity in middle east)

Responded well to global recession

Send clear signals to market regarding intention on economic policy

Future growth will hinge in part on to important factors: (1) labor investments - they have done well with minimal investment

cheap labor) so investors have largely overlooked this; however, labor costs will rise as their economy matures, thus making IP pro

Despite rapid growth, Brazil was the underperformer of the BRICs in many areas. It ranked among the most challenging countries

to start companies, and labor laws made it costly for companies to hire or fire workers (see Exhibit 7). Global analysts suggested th

rates, and cumbersome red tape. High interest rates and barriers to borrowing blocked market entry for entrepreneurial Brazilian

funding.

Economy:

History of economic boom and bust, hampered by high foreign debt and inflation. Lesson: reforms of 90's (Plano Real) generate

International

Build international coalitions, particularly among equal or lesser countries - position yourself as their leader on global stage.

Leverage international agreement policies to gain advantage (WTO, cotton dispute)

Careful not to align with "wrong countries" (Iran) - could hurt relationship with stakeholder countries

Need to improve workforce and infrastructure

Related thought: government is trying to create more sophisticated (e.g. high tech) industries and does this through a great dea

Labor productivity is a leading indicator of long-term country stability/growth, and this figure is closely tied to infrastructure.

Social:

Invest in your people (e.g. healthcare, retirement), even if fails to meet full scope of need. It sends the right signal and helps mi

Democracy ensures public voice in politics.

Government:

Watch out for government corruption and bureaucracy it will impede business growth and investment

What do we want to say about business incentives? They have some generous incentives, but overall cost of business is still high

Need to mind you overall ease of starting a business score build policy around this.

Brazil


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Spain

Japan

Spains banking problems lie with the regional banks (the cajas) that lent all the money to property developers to fuel the boom times.

In theory, the cajas sound good they are small, local and focus entirely on retail and commercial banking, lending to local businesses.

Almost all of these banks were controlled or influenced by one of Spains local governments. The politicians in power would have voting

There were about fifty cajas now reduced to ten. It is now becoming clear that the local developers were in cahoots with the local po

2008-5th largest economy in the world

Population 46 million

GDP: 5% agriculture, 29% industry and 67% services, tourism (2nd highest in the world) 10.7% and construction 11%

Trade: 61% imports and 72% exports

Democracy (since 1978), governed by parliamentary system under a constitutional monarchy

Decentralized- autonomous communities had their own elected parliament/government

Universal healthcare GIni coefficient 34.7%


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How Countries Compete: Strategy, Structure, and Context

Introduction

1. Ten Strategies

Category Types of Strategy Description

Fiscal policy The governments budgetary stance: surplus, deficit, balanced. Managed through spending and taxation policie

Monetary policyControls supply of money via interest rates, open market operations, and reserves to ensure healthy economic

foreign exchange.

Control exchange ratesSome countries allow their currency to float freely (open market) while others fix the price or manage their app

manage their currencies instead control flow of capital in and out of the country (capital accounts)

Income policy Direct control over wages and prices: rarely used and rarely effective. Used primarily in emergencies inflationa

Trade policy Use of tariffs, quotas, and other restrictive agreements. Most common microeconomic policy.

Restriction or promotion

of federal direct

investment (FDI)

Designed to protect domestic firms from foreign ownership or from foreign competition. Historically, countries

foreign direct investment. Today, most countries have significantly lowered the barriers to FDI, following the su

many countries eagerly encourage FDI by offering tax remissions and creating industrial parks or business cluste

Nationalization and

privatization

Mirror policies deployed by countries wishing to affect the ownership of firms. Historically, often include utilitie

trend has been to privatize.

Economic regulation

Economic regulation, which is usually implemented to correct some perceived economic flaw (such as a natural

a major impact on development. Has been applied to many vital industries: transportation, energy; telecommun

can amount to 25% of an economy and have large affects on infrastructure).

Competitive policyLarge affects on national output. Can range from strong antitrust provisions designed to encourage competition

pricing, as in Japan before the 1970s.

Provision of subsidy

There is a wide range of subsidies, varying from direct grants, to tax reimbursements to help with inputs (e.g. la

defense contracting and government purchasing. When such policies are coordinated with a broad developmen

policy.

Every country has a (1) strategy for economic development. It may be explicit or it may be implicit-a loose collection of goals and policies that merely appears as s

enough. Countries must have an (2) organizational structure that can effectively implement their strategy. A mismatch between strategy and structure invariably

strategy and structure must fit each country's (3) context - the national and international conditions in which the country operates. In business, context would be

level of corruption, natural resources, education, income distribution, and international security are key among these contextual factors.

Macroeconomic

Strategies

Microeconomic

Strategies


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2. Structures

Types of Structure

Political

Economic

3. Context

Developing Resources

Resource

Natural

Human

Technology

Abundance varies greatly across countries. Regardless, it must be managed very carefully to avoid excessive environmental damage, waste

China: Limited arable land to feed large population. If land is deforested, over fertilized, or allowed to erode, it will adversely affect the c

abundance of coal for energy, but is now suffering from significant air quality issues.

U.S.: Has one of the largest abundances of resources in the world, particularly fossil fuels. Years of underpricing and overuse have great

emissions are most inefficient in the world (per capita)

Saudi Arabia: Abundant oil has fueled a wealthy, powerful monarchy that sustains power by subsidizing critics and opposition groups and

Wealth is concentrated, resulting in weak GDP growth (1.8%).

South Africa: Great abundance led to over-reliance on raw material exports

UK and Singapore: Small islands with minimal resources, they compensate by investing in financial and intellectual resources.

Both quantity and quality are vital:

Quantity: Chinas workforce is immense and unskilled, creating downward pressure on wages. In contrast, declining birthrates (e.g. Sing

keep economy growing.

Quality is a bigger issue: Countries with highly developed education system (U.S.) leverage this to drive economy (e.g. scientific advances

Indias economic rise. Aside from formal education, informal education also helps (foreign direct investment by western firms in China has

Chinese workers).

Educational institutions, corporate research labs, and patent offices are critical technology drivers (e.g. U.S. and France). Absorbing techno

is a secondary path (e.g. China).

Foremost structure to differ across countries: democratic, communist, autocratic, etc. Can be a two party system (U.S., UK) or dozens (Ital

The more parties, the more difficult to enact broad policy changes. The fewer parties, the more likely to see sharp policy changes with eac

for long term objectives)

Description

At a macro-level, deals with relative weight of consumption, investment, government and trade (in U.S, consumption is 70% of GDP; in Sing

50%). At a micro-level, economic structure varies sharply with private v. public ownership, concentrated v. fragmented incomes, and manu

Description

Institutional

Includes structure of banking system, court systems, policy and military, and rule of law (particularly property rights). Further, several instifor the country to develop: labor management, savings systems, nature of bureaucracies, separation of power between legislative and exec

federal government and states. e.g. Singapores Central Provident Fund guaranteed high enough savings to fund domestic investment, m

has no such system, therefore savings are among lowest in the world.

To grow, every country must make choices about the use of scarce resources. If economic growth is to occur, these must be increased and must be used efficient


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No country can accelerate economic growth if consumption and imports absorb all available resources, as there would be no surplus capita

capital:

1. Debt from domestic banks: Savings rates vary dramatically across countries.

For example, Asians are savers (30-40% of GDP): for retirement, as there are no support programs; tax benefits; cultural trends, legal requi

compulsory 40% down on home mortgages in some countries. Westerns, in contrast, are spenders.

Therefore, the structure of institutions is crucial. If equity markets are weak (as they were in japan) or nonexistent (as in China), and if capit

savings flow to domestic banks. With a limited number of banks and nationwide branching, it is possible for government to channel savings

industries targeted for success.

2. Domestic equity: The U.S. has long maintained well-developed equity markets with widespread access through investment banks, disco

Combined with a healthy venture capital market, raising funds through equity has been far easier than in any other country. Domestic equ

3. Foreign direct investment (FDI): Historically, most comes from and goes to developed countries. Since the early 1980s, FDI has increasing

countries -especially as they opened domestic ownership to foreigners and privatized. Canada and Singapore are good examples of sourcin

special economic development zones.

4. Intentional foreign debt financing: In many developing countries, where living standards are low and capital scarce, public and private d

its railroads and canals by selling bonds to affluent British savers). Foreign debt reliance first took off after oil shock of 1974: oil price incre

countries that banked it. The global economic slow down forced countries to borrow heavily from these multi-national banks. This continu

broke, unable to service their debt. This led to expansion of IMF (International Monetary Fund) to become lender of last resort: they lend

5. Unintentional foreign borrowing: Some countries (India and Poland) had no intention of borrowing: India aimed for autonomy from the

finance. But because of the oil shock (in India's case) and asymmetrical trade with the USSR (in Poland's case), both countries began borrow

payments deficits. The result was the same-debt crisis.

As a consequence of these continuing problems, foreign debt became a less acceptable way to finance economic growth. Increasingly, cou

domestic finance and foreign equity were less leveraged, sounder channels to finance economic growth.

Capital


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Efficient Usage of Resources

Source

Foreign competition

Domestic competitio

Competition for FDI

Administrative allocat

Role of Government

Role

Security

Creating contracts,

protecting property

rights, and enforcing

laws

Backing risk

Managing macro

economy

Implementing

industrial policy

Many larger countries have competitive markets, but U.S. sets the standard. With almost no state-owned firms and a powerful antitrust tra

near constant pressure on firms to innovate, minimize costs, reinvest, and pursue competitive advantages.

Countries that seek foreign capital compete in a world market for POI. Examples:

Canada: successful in courting U.S. investors, mostly in minerals-related sectors

NAFTA: Reduced North America trade barriers and amplified U.S. investment in Mexico

China: best example, via economic and technological development zones

Deemed to be wasteful, inefficient and corrupt by many western countries, particularly U.S. and U.K. History has shown, globally, that this

Has worked in a few occasions: government owned 25% of GDP in Singapore across many industries, which led to over 9% GDP growth for

Description

Government must provide security-both domestic and international security-so that markets can work. Crime interferes with market trans

and organized crime controls and distorts whole sectors of commerce.

Description

Countries that expose themselves to international competition experience one of two results: either efficient use of resources or failure. E

Italy: developed a host of craft industries in regional clusters that could not have succeeded without constant pressure of foreign compet

South Africa: BMW makes vehicles for export here - foreign competition pushed both the firm and the country to be efficient.

Every country needs a legal system that is trusted by people and institutions, and that works to settle commercial disputes. Where propert

1990), credit is uncertain, property markets do not function, and investment is damaged. Countries need a system of tax collection that wo

works. Securities laws that facilitate investment, banking regulations that secure deposits, and legitimate relations between nation states a

function.

Government backs risks of all sorts. While markets can handle ordinary risks through insurance systems, government is needed to absorb e

eighteenth century and environmental regulation, health insurance, regulation of nuclear facilities, unemployment insurance, and retirem

the sectors that only government, as the sovereign, can effectively back.

Government manages the macro-economy through fiscal and monetary policy. But even more significantly, ALL governments create, legitim

occur, and markets cannot work, without a reliable medium of exchange (e.g. managing hyperinflation, bank authority, etc.)

Affects change via explicit policy and as an implicit result of microeconomic policy. For example:

Tariffs: to manage trade and regulate foreign investment, externalities, and competition

Subsidies: to aid particular firms and industries

These are often effective, but can also produce conflict internally, weaken productivity, and maldistribute income.

Thought to be crucial in influencing economic development. There are more negative examples than positive ones; however, there are five things all governmen


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Efficient Usage of Resources

Efficiency Source

Domestic

competition

Countries that expose themselves to international competition experience one of two results: either efficient use of resources or failure. E

industries in regional clusters that could not have succeeded without constant pressure of foreign competition; (2) South Africa: BMW mak

pushed both the firm and the country to be efficient.

Deemed to be wasteful, inefficient and corrupt by many western countries, particularly U.S. and U.K. History has shown, globally, that this

Countries that seek foreign capital compete in a world market for POI. Examples: (1) Canada: successful in courting U.S. investors, mostly i

North America trade barriers and amplified U.S. investment in Mexico; (3) China: best example, via economic and technological developm

Many larger countries have competitive markets, but U.S. sets the standard. With almost no state-owned firms and a powerful antitrust tr

near constant pressure on firms to innovate, minimize costs, reinvest, and pursue competitive advantages.

Foreign competition

Description

Administrative

allocation

Competition for

foreign direct

investment


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Role of Government

Role

Security

Creating contracts,

protecting property

rights, and enforcing

laws

Backing risk

Managing macro

economy

Description

Affects change via explicit policy and as an implicit result of microeconomic policy. For example: (1) Tariffs to manage trade and regulate fo

and (2) Subsidies to aid particular firms and industries . These are often effective, but can also produce conflict internally, weaken product

Implements

industrial policy

Every country needs a legal system that is trusted by people and institutions, and that works to settle commercial disputes. Where propert

1990), credit is uncertain, property markets do not function, and investment is damaged. Countries need a system of tax collection that wo

works. Securities laws that facilitate investment, banking regulations that secure deposits, and legitimate relations between nation states a

function.

Government backs risks of all sorts. While markets can handle ordinary risks through insurance systems, government is needed to absorb e

eighteenth century and environmental regulation, health insurance, regulation of nuclear facilities, unemployment insurance, and retirem

the sectors that only government, as the sovereign, can effectively back.

Government manages the macro-economy through fiscal and monetary policy. But even more significantly, ALL governments create, legitim

occur, and markets cannot work, without a reliable medium of exchange (e.g. managing hyperinflation, bank authority, etc.)

Government must provide security-both domestic and international security-so that markets can work. Crime interferes with market trans

and organized crime controls and distorts whole sectors of commerce.

Thought to be crucial in influencing economic development. There are more negative examples than positive ones; however, there are five things all governmen


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Short term

Brazil China Spain Japan

Brazil China BrazilChina China China

Spain Brazil China Japan

Japan Japan Either Japan

Long Term

Brazil China Spain Japan

Brazil Brazil Brazil Brazil

China Brazil TBD China

Spain Brazil China

TBD

(dependingon industry)

Japan Brazil Japan

Return on Investment Comparison: Short v. long term across each country


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Brazil

16th

Century Colonized by the Portuguese, exports of lumber, gold, sugar and tob

1822 Brazil declared freedom, still focus on commodity export

1888 Abolition of slavery

1889 Rebellion forming a republican government. Created a coffee cartel1930 Overthrow of republican government by Getulio Vargas. He became dictator.

Instituted exchange rate controls and import tariffs

Expanded into mining and oil

Restrictive labor market policies made it costly for firms to hire/fire

Still relied on agricultural exports for economy

1950s Coffee prices dropped and balance-of-payments crisis occurred, stabilizatio

1955 Juscelino Kubitschek continued state run industrialization

1960-1964 Inflation of went from 25% in 1960 to more than 100% in 1964

1964 Military coup, continued the ISI growth strategy but opened it up to direct fore

1982- disastrous end to Brazilian miracle driven by skyrocketing currency

1985 collapse of military regime

Inflationary to Real Growth

1989 Fernando Collor de Melo elected, Inflation rose to over 1,000%

1990 1/3 of population below poverty line

1992 Collor impeached, Fernando Henriques Cardoso introduced Plano Real cre

1993 inflation peaked at 2,700%

1994 Cardoso elected on success of Plano Real

1997/1998 Asian crisis and Russian government default led investors to pullout of

1999 Cardoso forced by IMF to make the real have a floating (not fixed) exchange

Brazil under Lula and Dilma

2002 Lula campaigned as a moderate even though he had a left wing background and wonTrade and Globalization

During numerous meetings of trade ministers for more than 140 countries Brazil sto

1995 Joined WTO after lowering tarrifs on imported goods. This helped national fir

2001 WTO Doha Brazil took a leading role in negotiations with the WTO and was

2008 Support disappeared for the Doha round as the US (and then global econom


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cco and then farmed coffee (using slaves from Africa and indigenous people). Exporting of co

n program driven by IMF implemented.

ign investment. Reforms called Brazilian miracle created GDP growth averaging more than

ating high interest rates to restrain inflation

emerging economies. Brazils tock market dropped 33% and cash reserves fell from $60B to $3

rate

the election easily. He came from a poor family, worked in a factory, and climbed the ranks of the metalwo

od out as a leading voice of emerging markets. Specifically, Lula led the creation of the WTO G

ms become global and it was driven by efficiency.

ogged down in disputes over agriculture and Trade Related IP Rights (TRIPS). They were at th

) tanked.


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modities was the focus

10%. Elimination of political parties

B due to trying to maintain a fixed exchange rate.

rkers union. Easily re-elected in 2010 and endorsed Dilma. This endorsement gave her the 2010 election

-21, a block of developing countries that negotiated collectively at WTO meetings.

e forefront instead of the US etc. One goal of the Doha round was to minimize agricultural sub


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as she was behind her competition until then. Her background was different as she was from a middle cla

idies in the US and other established countries.


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ss family


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1970s Japan had recovered from post war devastation and citizen1980s USA had large trade deficits with Japan1990 Japan economy began to suffer with through economic down

Early 1980s US has large trade deficit with Japan

1985, the 5 leading industrial countries formed the 1986, Japan dropped the discount rate to combat t 1987, Discount rate hits 2.5% (its lowest post war l 1989, Discount rate was raised to 3.5%, which cau 1996, Urban property values fell 56%. 07/1998 Government announced setting up bridg 1999 The discount rate reached 0.1%2002 The Japanese economy began to pick up2005 The economy was doing well.2006 Short term interest rates rose.2007 Post war baby boomers began to retire2010 Japan comes out of the economic crisis of 202011 GDP then fell by 0.7%.2011, Chinas GDP overtook Japans. China is also2012 The growth forecast was 2%.


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were living comfortably.

urn and corruption

nd West Germany.plaza accord to drive down the dollar.

e falling growth rate, causing the bubble

vel)

ed the Nikkei to drop from an all-time high of 38,915 by 48%. This was almost a value of $4.9

e banks to help sick banks

08 with a 4.5% GDP growth in 2010.

xpected to overtake that of the US in 2027. Indias is expected to match Japans in 2012.


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rillion in two years.

international enviornment exam grid.all countries done

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