October 2015 – DTCN

70% of companies say economy will recover

【summary】
About 70 percent of companies recently surveyed said that domestic economy will moderately recover and 60percent said the economy is currently holding steady.
It is said that the chinese economy will adversely affect their business.
The survey was conducted 118major companies.
Asked about reasons,60 of the 69 companies said there is a “lull in consumer spending.The second most common reason,given by 52 companies was “slowdown in emerging economies.”
This means that an increased consumption tax and rising prices have prolonged among consumers.
In addition, the slowdown in the Chinese economy has restrained japan ‘s economic recovery.

【opinion】
I think the future of Japan’s economy can’t separate with Chinese economy. Because Japan’s main business connection is china.China takes up most of Japan’s Import and export .
Chinese economics and japan ‘s economics have deep close relation and there is a direct relationship,so that we should cooperative to success for business.

UK needs Chinese investment, ambassador says

【Summary】

Chinese ambassador has said that the UK needs Chinese investment. Chinese president Xi says that if UK is open to China it will be beneficial to both of country. UK and China are going to build a nuclear power plant in UK. This project is important for UK to make a good relationship with China. Chinese ambassador have a strong will to do this co-operation.

【Opinion】

In terms of making partnership with China, this project is necessary. However in terms of safety, it is not good. It should be careful to sustain nuclear power plant. To prevent accident like Chernobly and Fukushima, high technology is needed. In this project, the ‘high technology’ is left to Chinese companies. I am skeptical about Chinese companies because there was big explosion in port of Tianjing. It is dangerous to rely on china to ensure safety.

UK needs Chinese investment, ambassador says

We talked about economy on building new nuclear power. I will summarize this talk and express my mpinion.

1.Summary
UK plans to build a new nuclear power and China support it. China’s ambassador say that UK needs Chinese investment and that it is in the best intrest of pertnership between China and UK. He also asked whether a UK cmopany would be allowed to build nuclear power plants in China in the same way as Chinese firms will do. This is an important project between two countries.

2.Opinion
How does the relationship change after the deal between UK and China? In my opinion, it would be strengthened in terms of economy but doesn’t become a friendly nation perfectly. There are two reasons.
Firstly,this is very complicated political problem. The purposes of this deal is to support monetarily, to plactice nuclear technology and to control energy. It is most important and sensitive for the nation to secure electric capacity and to supply safely so the government must want to manage the nation’s energy. It is quite danger because the foreign countries are in power on supply system. Certainly, we need nuclear power plant because it is efficient because of lower cost and less emission of CO2, but the government would avoid the situation.
Secondly, the ratio of nuclear power plant is not large. The main way to generate electricity in UK is thermal power generate. It wouldn’t change after the deal because nuclear power plant has problems. For example, we don’t have efficient means to deal with radioactive waste. We bury in underground depots now but there is a limit. We have no space to bury long time. Therefore thermal power generation continue being the principal way.
Consequently, nuclear power plant is efficient way and we need it so the relationship would be strengthened. However, to rely on the foreign countries as a source of energy is quite dangerous so the relationship will no more than economy checking each other.

Volkswagen emissions scandal

summary

Environmental Protection Agency is about to order a recall of VW products after VW had admitted cheating in diesel emissions test.

VW told that the automaker is currently working on the acceptable fix for diesel models.

Despite the scandal over the diesel engine vehicles, the VW reported that its sales have been surprisingly increasing.

VW increased its sales up to 0.6% in the US, 7.4% combined with the sales of Audi U.S. in spite of their suggestion about the sales.

The company said it will take several months to get the bottom of the scandal regarding it’d cheated on around 11 million diesel vehicles.

my opinion

I never forgive this scandal for three reasons.

The first reason is that the VW is highly trusted from its customers. Therefore, I think it is necessary to provide a product that is reliable and trust worthy.

Cars are not products we can buy with low price. We have to pay a lot of money in order to buy it, so we have to be able to purchase a car with safety, and fairness.

Furthermore, this scandal affects not only on its customers trust that but also the environment. This product is widely used in Europe. Exhaust fumes have negative effects on the environment. We have to do things that are good for the environment.

Last but not least, the scandal will have negative impact on other car companies besides VW. For example, Mazda also sells the diesel engine vehicles. People who don’t have any knowledge about the diesel engine would think of it is spread widely, its marked will surely shirink.

Would Bank lent money to help refugees

<summary >
Now, there are many refugees from Syria in Lebanon and Jordan. The largest number are in Turkey, but these countries are the much smaller economies to accept them and World Bank said that there is a substantial financial burden being born. So they decided to lent the money to them to accept many refugees.

<comment>
The problem of refugees are serious in the world now. It is not problem only Lebanon and Jordan. For example, many refugees are crossing the Mediterranean Sea to escape run away to Europe and during crossing, some of them died. In this case, I think the country which does not have enough economic power to accept refugees like these countries should not accept them. It is not good both of people of these countries and refugees because neither is treated enough. Then, developed countries like Japan, America and Europe should accept more instead of them and try to stop wars not to increase refugees any more.

UK’s deal to China

In the last class, we discussed economics about the UK. China’s ambassador said that the desirable deal to construct a new nuclear power plant at Hinkley Point in the UK was “in the best interests of Britain and also in the interest of partnership between China and UK.” He thought that UK people eager to have a better life, that is, higher quality of life.
“Now, French is a country that has co-operation with China but in the future, the UK will be the Western country that is most open to China. This is a visionary and strategic choice which fully meets Britain’s own long-term interest.” President Xi thought.

It is true that China has had economic power recently and had a significant influence on world business, but I think that China’s power is decreasing these days because China don’t do well about a deal with countries which have co-operation. So, I don’ think it necessary to trade with China, much less have a deal about nuclear power. Since the Fukushima accident, people in the world have realized that nuclear power is cruel, so we should aim at the world which has no nuclear power at all.

Volkswagen’s emissions scandal could be far more painful than Volkswagen spokesperson thought.Volkswagen has set aside 6,5 billion euros to deal with this problem,after the company was caught cheating on emissions tests estimate.However,Credit Suisse’s most conservative estimate of the cost is about 23 billion euros.This is about three times the estimate of Volkswagen.The automaker thinks that 11 million vehicles worldwid affected. This number is very high.It is true thatVolkswagen is a big car company,but in a year,it sells less cars than this number.Credit Suisse said that
Volkswagen may compensate customers for this damage .
I think that Volkswagen’s confidence will decrease and another car companies may grow,for example,TOYOTA,American car company and so on.TOYOTA is a Japanese car company,and a very big company.Recentlly,this group has increased sales of the cars in foreign countries,so because of this case,it will spread a European marcket.Moreover,American car companies will spread a European marcket.American car companies are not so big as TOYOTA,but their finances are very strong.So,they can spread a marcket.
I think Volkswagen should find a way of the present difficulties and repair finance and take back confidence.If Volkswagen can not make up for this scandal,it will go bankrupt or be absorbed by other big car companies

which jobs could a 100year old do?

Windows

In this week, our topic is ‘which jobs could a 100 year-old do. Recently, children (including us) could live 120 and work until they are 100. I think that we can’t live 120 years old but we mat live almost 100 years old. Do you image that you go to sports club and work anything? What’s more, we are 100 years old, I can’t image. Of course, I want get job and want to work by my retirement .I am going to go abroad after retirement. I will stay here and I want to make myself at home. Well, why they work? They are nonagenarian.

Certainly, they are not young as us. Need money? They feel worth doing? They don’t get pension enough? They have some reasons. So I think that truly truth is they have knowledge, experience, and a lot of practical experience. So they work without regard to their ages. I don’t think to work but I sympathize with their ideas.

The World Bank is trying to put together a package of financial assistance for countries hosting refugees from Syria. Lebanon and Jordan have a substantial financial burden of hosting refugees because they are much smaller economies. Actually, in Lebanon the number is equivalent to 30% of the population and in Jordan the figure is 20%. Millions of refugees are now in countries burdening Syria. So, the World Bank would make loans to Jordan and Lebanon, with aid donor covering at least of the interest cost. By hosting the refugees the countries concerned are providing what World Bank economist called a “global public good”.

I wondered why the World Bank help financially with interest cost. Surely this action is a one of the action of Bank, but I think that the World Bank or United Nations should subsidize for helping Lebanon and Jordan economically. In this case, the World Bank will be reimbursed from Lebanon and Jordan. So, these countries must reimburse with interest cost. In the future, reimbursement become economical burden. This way is not solution, but it is temporary reduction of financial burden caused by hosting refugees. I think that United Nation should consider the solution of conflict in Syria. This is only way to solve this refugees problems. Refugees problem is very complicated and difficult. I hope solve these problem quickly.

The slump of the economic growth of China

Summary

China’s economy falls into a crisis now. Chinese goverment aims for 7% of economic growth rate. However, China’s economic growth rate of this year did not reach 7% of aims. It was 6.9%. Actually, it is thought that it is lower. Chinese goverment has been switching over from export-centered economy to service industry-centered economy. Chinese goverment predicts that the economic slowdown is correctable. It is optimistic. Analysts say the steep fall in imports suggests domestic demand is not as strong as the goverment would have hoped. The goverment’s measures were not enough to prevent this problem. Economists are continuing to call for more action.

Reaction

I think that the drop of the economic growth rate in China is caused by the drop of oil prices. As a result of price competition with Russian natural gas, the oil prices decreased. Then it became easy to make iron and it has become the oversupply. I think that there may be these in the background of this problem. I think that this problem’s influence which gives to Japan is big : for example, slump of the travel industry. Now, many Chinese tourists visit Japan every year. If Chinese tourists decrease because of the bad economy, japanese tourism industry will be heavily damaged. In this way, I think that it is not a thing irrelevant to Japan. Japan should make an effort for this problem, too.