RJ 1

Sky
Jan 27th, 2010
Business Economics

Reference:
Reuters.(2010, Jan 28). “Japanese export rise for first time since crisis began”, The New York Times. Retrieved in Jan, 26th, 2010 from http://www.nytimes.com/2010/01/28/business/global/28yen.html?ref=global

Summary:
Since the Financial Crisis, which began from 2008, the exportation for Japan increased for the first time these days. As a matter of fact, exports have been raised 12.1 percent in December from a year earlier overall, including the shipments to the Asia region, which are about more than half of all exports of Japan, especially the part of China. Exports to China actually increased 42.8percent, the number compared to one year earlier rose 10.7 percent. Surprisingly, the exports to United States went down about 7.6 percent. There are two main reasons to explain that. First of all, the instant growth of the whole Asia area could help the economy of Japan to avoid another recession. Secondly, Asia’s urgent demand for the goods from Japan just compels the prospect of the market. That is basically why Japan want to increase the exports to the Asia area. Although the exports toward United States decreased, “we can’t rely too much on strong growth in those countries, so Japanese exports will continue to focus on shipments to Asia”, said Takeshi Minami, chief economist at Norinchukin Research Institute. In fact, there still is an obstacle on the way of recovering of the economics in Japan. That is the extraordinary increase of the Yen. It will force the government to face the pressure of deflation in the future.

Reaction:
Increasing the exports of Japan to the whole Asia area could benefit both Japan and the whole Asia area, but also could put the pressure on the Asia area especially China. The pressures are from the influence of those exports on the sales of their rural products. But as the Yen just reached the highest point which contracts with US dollar, the prices of export goods from Japan must be expensive in some degree. The government of Japan is facing the challenge of the exports of Japan would bring a better view of the world’s economics in the future.

Vocabulary:
Financial crisis: Economical problems that include stock market crashes and the bursting of other financial bubbles, currency crises and sovereign defaults.
Recession: A recession is a business cycle contraction, a general slowdown in economic activity over a period of time.
Rekindle: To revive.
Appreciate: To increase in value.