A quick look inside the Asian

EconomyCédric De Kerpel

Summary

1. Introduction

2. China’s influence in the world

3. Yen vs. dollar

4. Manufacterers confidence

5. Conclusion

1. Introduction

Emerging market China second biggest industry

Japan

India

Growth of GDP China 8,8 trillion dollars

Japan 5 trillion dollars

1. Introduction

Large workforces,but cheap labor cost

mass production Textiles

automotive products

electronics

2. China’s influence in the world

Influence

◦ Largest exporter, second biggest importer

◦ Price setter

◦ Owns a third of the world currency

reserve

2. China’s influence in the world

How to use influence?

Trading power Guard and develop global trading system

Global monetary system Lobby with big countries

2. China’s influence in the

world Finance

Create a financial system that aids domestic

and global development

Ressources Ensure that exporting countries benefit from

foreign investments

3. Yen vs. Dollar

Japan earthquake crisis

Concerns about impact on the global

economy

Yen surges

shares suffer losses

3. Yen vs. Dollar

New record high 76,52 Yen/USD

Yen/USD on march 17th

3. Yen vs. Dollar

Reasons Yen surge

◦ Japanese investors Repatriate cash to cover disaster costs

Sell foreign assets demand for Yen rises

◦ Families stocking up supplies ATM

crash This hurts the Yen

4. Manufacturers confidence

Pre – earthquake

◦ Manufacturers grew confident about the

economy and business

Post – earthquake

◦ Manufacturers are grim about business

◦ The outlook is not good

◦ Chance of recession?

4. Manufacturers confidence

Stocks drop, Yen rises

Damage of 300 billion USD

Blackouts slump production

4. Manufacturers confidence

Big companies

◦ Cut spending with 0,4%

◦ Less production

Governement will give temporary

loans

5. Conclusion

Asia is becoming one of the better

economies

Industry leader

But the Japan crisis will hurt their

short-term growth and stability