U.S and Japan are two major economic powers accounting for almost 30% of world domestic product. Also they the two countries occupy a significant portion of both international trade and investment. Apparently, U.S and Japan are major actors in the world economy whose impact on the rest of the world is undeniable. Trade relationship between these two countries is very solid and mutually gainful and is integrated trough trade in both goods and services (Vogel, 2002). The two countries act as large market for each other’s exports as well as great sources of imports and are closely connected via capital flows. Japan has been a primary foreign source of financing US debt and a major source of foreign private portfolio and direct investment in US (Lampeer, 2007).
Japan mostly imports raw materials, machineries, automobiles and manufactured goods from USA. On the other hand, Japan exports manufactured goods and automobiles. There has been some trade deficit for the US goods and services between US and japan since exports were more than imports. Some of the main U.S exports to Japan include coarse grains, red meat, wheat and soybeans as well as private commercial services such as travel and royalties (Lampeer, 2007). Also, Japan has supplied vehicles, machinery, electrical machinery, optic and medical instruments, snack foods, wine and beer as well as processed fruits and vegetables. U.S has also imported some private services from Japan such as freight services, royalties and licenses (Vogel, 2002).
Bilateral trade between Japan and USA is of great help to both the countries. Both Japan and USA have well educated workforce producing some of the best products. The need to produce sufficient export for USA has however had some effects on the employees by introduction of longer working hours. It is apparent that the relationship between USA and Japan has both direct and indirect effect. There has been an increase in demand for worker hours in Japan’s export thus reducing work hours required for domestic production (Lampeer, 2007). Many employees in Japan are working towards increasing their export to USA especially in manufacturing sectors leaving non-manufacturing sectors with decreased level of employees. Japan employees do not therefore enjoy enough time with their families because they are always working hard to increase their US exports and to beat possible competition from countries such as China.
On the other hand, consumers and their families in US enjoy high quality products from Japan such as electronics because of the bilateral trade between Japan and USA (Vogel, 2002). When the trade between US and Japan is stopped, Japan will suffer a big blow because it does export much to the US than it imports from US. There will therefore be a big balance of payment between Japan’s export and their imports. This may further lead to depreciation of Japanese yen thus affecting the economy of the country (Macdonald, 1999). Moreover, many employees working in industries producing export products may lose their jobs. Standard of living amongst the larger Japan population depending on the export industries may go down. US may also have their employees depending on export industries losing their jobs as well. This may affect US economy particularly while considering that there will be decreased balanced of payment. US citizens will also not be able to buy various products manufactured in Japan (Lampeer, 2007).
Trading tends to bring balance when there is excess demand or supply particularly in domestic markets which plays an important role in managing price fluctuations and ultimate supply shortages. A country may supply their excess agricultural products to the international markets which may serve as the place to dispose of the surpluses. International trade may also stabilize a domestic country’s currency and general economy (Macdonald, 1999). Global market stability is brought about by the availability of almost every product that one country may lack and the other one has. However, trading may destabilize the global market. Country specialized in production of a particular export but depends on imports of other products may be affected to price fluctuations. Price fluctuations is mostly experienced in goods that are marginally exported or imported without policy instruments intended to detach domestic prices from world price fluctuations (Lampeer, 2007).
Introduction and Globalization
Travelling to Dubai was a bit challenging especially the idea that I was going to a place dominated with religion that is different from mine. Most people in Dubai are of Islamic religion and there are also strict rules in Dubai compared to USA. There are so many things prohibited such as drinking, public displays of affection and sex outside marriage which may lead to serious criminal charges. There are also no over the counter purchase of medicine is prohibited. I had to equip myself with most of the laws and regulation in Dubai (Pedersen, Asmussen & Devinney, 2011).
Numerous laws and prohibition made me have very minimal movement and interaction because I always felt an ease for fear of being on the wrong side of the law. Life may not be normal to any foreigner travelling to Dubai because of various restrictions and rigidity put in place in the name of maintaining good morals amongst people. Nevertheless, Dubai has several opportunities especially to foreigners’ because there are many booming industries and numerous sectors developing. In fact, most of the employees in Dubai are foreigners who come for various reasons such as career opportunities or just experiencing the great lifestyle in Dubai (Pedersen, Asmussen & Devinney, 2011).
Working with people from another country is such a great experience and one tends to learn a lot from a particular culture. Working with people from another country made me appreciate diversity brought about by culture. Living in an area of ethnic diversity expounded my attitude towards different cultures around the world. I learnt that there are strange and great things done by other people around the globe. I also learnt a bit of an Arabic language which made me feel like part of the bigger family living in Dubai (Pedersen, Asmussen & Devinney, 2011)..
I hope this course will enable me learn a lot about different regions and cultures around the world. I expect this course to broaden my understanding about global diversity. I believe that a successful global manager should be flexibility. A global manager should be able to adjust their thoughts and attitude to fit their immediate surroundings. This will help in adapting to foreign culture and diversity easily and further introduce solutions affecting a particular organization in a specific country (Pedersen, Asmussen & Devinney, 2011).
Additionally, optimism is another important attribute for global managers as it will encourage perseverance, motivation and eventually success amid global challenges such as unfamiliar or uncertain situations. Finally, open mindedness is a vital attribute required for a successful global manager. An open mindedness individual may make them not to be subjective and judgmental but rather view diversity as inferior. These kinds of managers are likely to accept change so fast because they are receptive.
Effects of Other Countries
What happens in other countries actually affect me either directly or indirectly. I do not concur with the statement that what happens in other countries does not affect me. I may be affected by incidences that range from political instability to terrorism in other countries. However, not only negative things happening in other countries because there are other great positive events taking place in other countries such as innovation or improvement of various national policies such as agricultural and health policies. Global has been reduced to a small village not only by technology but also by business and political decisions such as use of chemical or destructive weapons (“National Research Council,” 1997).
There have been various security concerns globally which not only affect economically stable countries but also affects developing countries in Africa and Asia. Looking at an issue such as global warming, it is obvious that whatever happens in another corner of the world would definitely affect me regardless of my social or political position. Various impacts of global warming affects people around the global evenly without being selective on where to strike hard. Suppose I wanted to travel to a place, I will initially find out about anything taking place in that country especially concerning security matters before I prepare myself to go (“National Research Council,” 1997). Whatever happens in Syria now is just an example of the need to learn about happenings in other countries. War in Syria may even lead us to the third World War depending on the decisions taken by the international communities. I should therefore follow closely what happens in Syria and even know when it is safe to travel to Syria and any other place for my own safety.
Lampeer, C. O. (2007). American economics and politics. New York: Nova Science Publishers.
Macdonald, N. (1999). Macroeconomics and business: An interactive approach. London: International Thomson Business.
National Research Council (U.S.). (1997). Proliferation concerns: Assessing U.S. efforts to help contain nuclear and other dangerous materials and technologies in the former Soviet Union. Washington, D.C: National Academy Press.
Pedersen, T., Asmussen, C. G., & Devinney, T. (2011). Dynamics of Globalization: Location-Specific Advantages or Liabilities of Foreignness?. Bradford: Emerald Group Pub.
Vogel, S. K. (2002). U.S.-Japan relations in a changing world. Washington, DC: Brookings Institution Press.