INDIAN FOREIGN TRADE

COMPARING THE UNITED STATES TO JAPAN

• Population- 303,824,640 • Unemployment-4.6%• Literacy Rate -99%• GDP -$13.84 trillion• Per Capita Income -$45,800• Growth Rate -2.2%

• Population-127,288,416 • Unemployment-3.9%• Literacy Rate -99%• GDP -$4.29 trillion• Per Capita Income -$33,600• Growth Rate -2.1%

USA JAPAN

SIMILARITY IN INDUSTRIES

USA • Petroleum• Steel• Motor vehicles• Aerospace• Telecommunications• Chemicals • Electronics• Food processing• Consumer goods• Lumber• Mining

JAPAN• Motor vehicles• Electronic equipment• Machine tools• Steel • Non-ferrous metals• Ships• Chemicals• Textiles• Processed foods

ICONIC BRANDS

USA • GE• General motors• Wal-Mart• Dell• Microsoft• Coca-cola• Marlboro• McDonalds• Oracle• Google

JAPAN • Sony• Mitsubishi• Toyota• Honda • Daichi• Toshiba• Hitachi• Mack daddy’s• Nintendo

NASDAQ VS. NIKKIE

You got a bubble, a devastating crash, followed by a recovery and inflation of another bubble

CURRENCY US Dollar vs. Japanese Yen, Weekly

• The Twentieth Century ended with two of the greatest financial market booms of all time.

• First in Japan in the late 1980s when the value of a few hundred acres in downtown Tokyo became more valuable than the entire state of California.

• And then when the giddy potential of the Internet turned legions of high tech entrepreneurs and investors into instant millionaires and even billionaires in the United States in the late 1990s.

MORE SIMILARITIES

• Interest rates in Japan are essentially zero

• Interest rates have fallen dramatically in the United States.

• Japan has had deflation since the mid 1990s

• By October 2002 the Japanese wholesale price index stood half a percentage point below its level twelve months earlier.

• The United States does not yet have deflation, but it has relatively low inflation.

• Japan has slow growth and a relatively high unemployment.

• The United States has recently shown slow growth and has relatively even higher unemployment.

CONCLUSION • The US & Japanese economy are one of the most influential economies in the world.

• They constitute 35% of the world GDP.

• One is the western power & the other eastern giants.

• Historically recession in both the economies have affected the globe.

• Japanese crash lead to the 1997 ASIAN crisis & the SUB-PRIME MORTGAGE is the 2008 American dream.