Posts tagged ‘International Trade’

Chairman of GAPPINDO said that import tariff from shrimp (lobster) item to Japan is ZERO, decline from 1 percent. The free tariff is realized based from the deal between Indonesia and Japan. Indonesian exporters are happy now because free tariff increase their profit and this zero tariff indicates that international trade between ASEAN and outside countries has been realized.

Our shrimp is Zero percent but a problem isn’t clear. Shrimp from Indonesia must wait for 3 days for checking (about the international standard, free from virus, bacteria and other point). This case isn’t happened to Thailand Shrimp. Thailand Shrimp doesn’t waiting for 3 days because they get privilege access; their shrimp is directly entered without procedurals checking as happened on Indonesian Shrimp. Read more »

How do Japanese do when Surplus Condition on International Trade
To continue my previous post ‘Floating Exchange Rate, Currency up and down, let us see how Japanese do to stabilize their money supply when surplus on international trade?
When surplus happened, that money didn’t entered to Japan, but let it outside as (foreign exchange) devise.

So what they do with their surplus?
Have you ever heard that Japanese become prime lender? Japan replaces the surplus to foreign investment, donor to poor countries, Move to World Bank, IMF as creditor country. Yeah! They do that. So we have to thank Japan that Japan becomes donor country. They avoid Internal Money Supply with aid (low interest rate donor) to third countries. Both of the rules have benefits and no one (countries) are harm with the Japanese move. Read more »

An economic theory; why currencies up and down, fluctuate
Before I go on, let make sense with an assumption, the currency must floating exchange rate (no official exchange rate) so a simple illustration will works well.
Imagine there are two currencies, Yen Japan and Dollar (USD). Another assumption is no speculation motive.

For example, when Japan have surplus on trade against America, Yen will appreciate because they hold more Dollar. So more dollar in Japan implicate more money supply otherwise American lost their Dollar, so we can say less dollar in America–money supply will decrease. Dollar begins cheaper on Japanese. Read more »