Question

The first two questions are not related to the case study.

1) In the year 2012, Shinzo Abe became prime minister of Japan, promising bold policies to improve Japan's economy. What was the focus of his policies and how did they affect Japan's trade position? (15 points)

2) the Swiss National Bank (SNB) decided to abandon its managed Swiss franc floor against the euro last January 2015? (15 points)

3)    What has been the relationship of Russia with the World Trade Organization (WTO) according to the article and your own research? Why? Explain your answer. (17,5 points)

4)    What has been the relationship of China with the World Trade Organization (WTO) according to the article and your own research? Why? Explain your answer. (17,5 points)

5)    What does the article mean when it says that “Statists emphasized differences of the Chinese approach to economic liberalization from the prescriptions of the “Washington Consensus.” In stark contrast to the latter, the “Beijing Consensus”. ? What is the relationship between the Beijing Consensus and Russia approach to economic development and trade? (17,5 points)

6)    After finally agreeing on the gas development project between Gazprom and CNPC the article points out that it is difficult to settle on the terms of trade for natural gas exports. Why? Does the final agreement benefit both parties in the short and long run? How? (17,5 points)

Answer 1

1.      The emphasis of his strategies were aggressive monetary policy, a flexible fiscal policy, and a long-term growth strategy through structural reform. Consequently, we saw loosening of monetary policy and new quantitative as well as qualitative monetary relaxation. Then we saw fiscal stimulus in the name of Urgent Economic Countermeasures for the Revitalization of the Japanese economy which lead to the lowering of deficit. Finally, there was growth approach to trigger private investment and the main emphasis was regulatory reform. The result has been a drop in unemployment, steady development toward overwhelming the deflation, growth in wage growth among part-time and temporary workers and the commencement of rise in land values though it hasn’t done sufficient to reinstate fiscal discipline.