Since the beginning of the 1990s, Japanese interest rates have been among the lowest in the world. The yen carry trade refers to the activity of borrowing yen and investing in high-yield currencies, which brings profits if the interest-rate difference is larger than the rate of yen appreciation. This case describes the rise of yen carry trade when Japan ente......

China's automobile industry enjoyed dazzling high-speed growth recently, with national production and sales almost doubling in the last three years. Already the world's third largest automobile market and expected to surpass Japan very soon, China was attracting all the major players, domestic and international, to reach for the big pie. But for those in hop......

Vietnam is one of the fastest-growing economies in the world, recording an average annual GDP growth rate of 7.5% over the last decade. But in the first five months of 2008, consumer price index inflation in Vietnam rose above 25%. In May, the trade deficit widened to 49% of GDP, and the stock market dropped by 60%. There were many signs that Vietnam was fac......

Inflation in China is very often taken to be as common as flying horses. Naivety be spared, if it stems from the general understanding that market forces are seldom scot-free in a controlled economy. More so, if one is talking about something declared as a part of national security. But, here is the truth. In 2007, inflation in China recorded 6.5%, the highe......

China’s automobile industry, with its incredible growth seems to be on the verge of creating catalytic shifts in the global automobile industry, which has been dominated by the European and US carmakers since a century. The strong support of the government has made it become the world’s second largest and most dynamic auto market. Its cost advantage and high......

Though India and China enjoy many similarities, China has surged ahead of India in terms of economic progress. While India's per capita income is $440 China's per capita income stood at $990. In China, 3% of the population is below the poverty line and in India it is 30-40%. China opened up its economy before India and could therefore attract foreign investm......

The Chinese Yuan is pegged to the US dollar and the exchange rate is maintained by large-scale purchases of the dollar from the open market by the People's Bank of China. Buoyed by an undervalued Yuan, China has been enjoying large trade surpluses with the US and has built huge foreign exchange reserves. This, coupled with a fall in the US dollar, has increa......

The US has always favoured a 'strong dollar policy'. However, China's currency, the yuan, is pegged to the dollar at about 8.28. The US, through the recent visit of its Treasury Secretary, John Snow, to Beijing, and through the G7 Communique, has spelt out the need for market determined exchange rates. US wants the Chinese peg to be replaced by free float, a......

Huge foreign and domestic investment - along with high productivity gains - mainly drives China's economic growth. Massive under-priced savings were poured into huge investment projects, supported by cheap labour. But these very factors - that fuelled China's growth - are allegedly inching the economy towards overheating. For which the government drew admini......

Taiwan has been enjoying a growth in the IT industry with a thrust on OEM/ODM (original equipment manufacturer/original design manufacturer) models, contrary to the developed companies' emphasis on brand building. Taiwan came to be known for anonymous products manufactured on behalf of their clients. Acer Communications & Multimedia's contract-manufacturing ......