business cycle

Once, when Japan faced pressure from abroad, it would either give in reluctantly or keep quiet and hope that the fuss would die down. No longer, it seems. The Clinton administration strongly believes in exerting such pressure. Its policy is to open some Japanese markets by setting import target—an approach to trade policy that supporters call “results-oriented”. This ugly term foreshadows uncertain consequences. Far from capitulating to this new thrust of American trade policy, Japan is taking a stand that could lead to a trans-Pacific confrontation.

One of the next challenges Asia will face is to cope with the down side of wealth.

The newly-industrialized countries are moving away from the labor-intensive sweatshops to the computer-aided workplaces.

The two driving forces of the new cycle of development in Asia are the rich middle class and infrastructure spending.

Passage 2

The numbers are surprising: millions of people getting off poverty in a generation, billions of dollars in wealth created every year. In the past two decades, two out of five Indonesians escaped poverty. Asian exports went from less than one-seventh of the world total to almost 30%. No wonder people call it the Asian Economic Miracle. But to the workers and 14-hour-a-day entrepreneurs, it was nothing magical. Just plain hard work, business sense, a taste for risks, and a bit of luck.Today, China, Japan, India, Indonesia and South Korea are among the world’s 12 largest economies. High-profile Asian businesses like Toyota, Samsung, Hongkong Bank and Singapore Airlines are now also global giants. And the growth formula of enterprise, investment and exports has crossed borders and waters. China and other socialist economies of Asia are following the trail blazed by Japan, the newly industrialized countries (NICs) and ASEAN.Now Asia is re-inventing the miracle. The affluent middle class created by the boom is taking over from exports as the main engine of growth. Also adding to the thrust is infrastructure spending to support future expansion. Asian investment and trade are developing new markets and production centers right inside Asia. Japan and the NICs are passing labor-intensive sectors like garment-making over to less developed nations and moving into advanced technology and services.Greater wealth has brought a down side. Many Asians have abandoned their traditional diets for many types of fat-laden foods. So, in addition to becoming taller, they are also becoming fatter. And they are growing more susceptible to diseases such as diabetes. Bad eating habits combined with stress have made cancer, heart disease and strokes into major killers.

The workers and entrepreneurs in Asia work 14 hours a day.

The economic development modes of the Asian countries are very different.

The writer thinks that McDonald’s hamburgers are not worth the money.

Companies should learn from artists and produce masterpieces.

The investment analysts who visited a UK engineering company were from Rolls Royce.

Nowadays, quality means consistency and cheap price.