Asia's culture and regional economy

Santiago Vargas Reyes - 1611024081

Joan Ceballos - 1433000011

Daniela Cardenas - 1711980751

Laura Arana Caicedo - 1520010439

Lina Maria Rodriguez Martinez - 1310010342

Politecnico Grancolombiano

University Institution

Bogotá-DC

2019
 Introduction

In this project we will explain how important the economy is in the continent of Asia through

the three countries we choose: Japan, Russia and Hong Kong. Because we believe that these

countries are concentrating the most important market in this region. First, Hong Kong

represents one of the two special administrative regions that exist in the People's Republic of

China, Japan has contributed to high development and peace in Asia, Russia is the world's largest

country. During the development of the research, we will show how important these countries

are for economic, social and political development.

Japan

Russia

HONG KONG
 Research problem

During the investigation, one of the most important disadvantages is to have updated

information since the economic figures are constantly updating, however, the problem of our

project is to analyze how the 3 countries that we choose have a Great influence in the economic

and cultural field compared to the other countries of Asia.

Hypothesis

Our research focuses on understanding the social, economic and cultural contribution of the

countries of Japan, Russia and Hong Kong. On the other hand, to know the benefits that are

obtained to generate alliances between these and other countries.

Justification

This project is carried out to know the cultures and economies of the Asian countries, as well

as to know the existing alliances or contracts and their contribution to each country to promote

the international trade.

 Objectives

General objective

(A) Nish a source of integration of Asian countries against large powers and thus demonstrate

how to obtain cultural, economic and social benefits.

Specific objectives

• To know the social and economic culture of Asian countries.

• To see how Asian countries are integrated and the contributions that are obtained.

• Demonstrate the benefits of the Allies of Asian countries and the importance of these in front of

the other continents.

Characterization of countries
 Japan

CAPITAL Tokyo

POBLACIÒN 126.746.000

INTERNATIONAL 4.971,93 USD

GDP

GDP PER CAPITA 39.306 USD

POBLACIÒN 126.746.000

Currency JAPANESE YEN (1 COP =

30,688 JPY

IPC 0,892%

UNEMPLOYMENT 2.5%

RATE

HUMAN GOOD QUALITY

DEVELOPMENT OF LIFE

INDEX

PUBLIC DEBT 234,98%

Economic context Analysis

Japan, the world's third-largest economy, is highly exposed to external impacts due to its

strong dependence on exports. Growth was mainly due to foreign trade and domestic

consumption. It is expected to follow the same trend in 2019 (0.9%), led by strong exports and

household consumption. (ASIALINK AMERICA ECONOMY, 2019)

Public debt remained very high (240% of Japan's GDP in 2018). The inflation rate increased

slightly to 1.2%, and should reach 1.5% in 2019. Moreover, the government deficit remained

high, with an increase in social spending. Japan's budget deficit was 3.7% in 2018, and is

expected to expand further in 2019. (DATOSMACRO.COM, 2019) Infrastructure investments

before the Tokyo Olympics 2020 also affect the increase in VAT (from 8% to 10%), which was

originally scheduled for 2018, but was delayed until October 2019. This does not seem to be a

realistic goal, as health spending due to population ageing has increased. In addition, private

investment is deficient despite favorable investment conditions.

Population ageing and political tensions with China and South Korea are additional concerns

that Japan will have to address in the coming years. The unemployment rate remains low and

reached 2.9% in 2018, the lowest rate since 1994. Despite the fact that wages grew in 2018, this

was related to the higher inflation expectations and a tight labor market. (GLOBAL-

RATES.COM, 2019)
Main economic sector

Although Japan has some deposits of gold, magnesium, coal and silver, the country has very

limited natural resources and, as a result, depends heavily on imports to meet its raw material and

energy needs. On the other hand, thanks to its large maritime area, the country is one of the

largest producers of fishery products in the world. However, since only 11% of Japan's surface is

suitable for cultivation, the agricultural sector is small in Japan. Tea and rice are the two largest

crops in the country, although the sector as a whole is highly subsidized and protected.

Agriculture contributes marginally to GDP (1.2%) and employs only 3.4% of the workforce.

The country is the world's third largest producer of automobiles and the second largest

producer of boats. Its industrial sector accounts for more than 29% of GDP and employs a

quarter of the workforce.

The service sector accounts for almost 70% of GDP and employs 71% of the workforce. The

main services in Japan include banking, insurance, retail, transportation and telecommunications.

The country also has an important tourism sector, which has experienced substantial growth in

recent years.
 Russia

Located in Central Europe Russia is the largest country in the world with an area of

17,098,250 Km, has a population of 143,990,000. Its capital is Moscow and is the economy

number 11 by volume of gross domestic product. Russia's economy is based on the export of

resources and consumer goods, and on the other hand it is a country with a high level of

industrial, technological, aerospace and atomic energy development. 32% of the Russian

population works in the industrial sector contributing 40% of the country's gross domestic

product, 10% of the Russian population works in the agriculture, livestock and cereals sector are

the main agricultural products of the country, in addition the Large reserves of natural resources

such as oil, natural gas, aluminum, steel, coal and wood represent 80% of the country's exports.

Inequality in the population is still high especially in the cities and rural areas, the poverty rate is

13% although in 2018 the unemployment rate was reduced to 5.5%.

Total Gross domestic product: 2.3

Inflation: 5,269

Unemployment rate:4.7

Human Development Index (HDI): 0,816

Doing Business (regulations for doing business): Place 31

Exchange rate (Colombian pesos): 1 Russian ruble is equal to 52,11 pesos

International reserves: 482,610,000

External Debt / GDP (External Debt over GDP): 15,52

Hong Kong

Characteristics of the country

Official name Hong Kong

Capital Victoria

Major cities (GeoDatos) Hong Kong, Kowloon, Tsuen Wan, Yuen

Long Kau Hui, Tung Chung, Sha Tin,

Tuen Mun, Tai Po, Sai Kung y Yung

Shue Wan

National Day October 1 – National Day of the People's

Republic of China.

Year of Independence 1945

Geographical aspects
Surface 1104.4 Km2

Population 7.409.800

Language Chinese

Religion Buddhism, Taoism and Confucianism

Government Executive

Current president Carrie Lam

Economy (datosmacro.com)

PIB (2018) 307.406 M.€

Inflation (2018) 2,3%

Unemployment rate (2018) 2,6%

Human Development Index (2017) 0,933 %

EUSTAT

Business (2019) 4th

Currency Bun Dollar

Exchange rate (Colombian Pesos) 1 dollar bun = 429.60 Colombian peso

International reserves US $432 million

External debt (2018) 0,05%

Exports (% GDP 2017) 161,05%

Imports (% GDP 2017) 172,65%

Analysis

Hong Kong's economy is recognized for its liberalism; It has been known to keep growing in

one of the most important indices in the market that is the gross domestic product achieving the

number 35 of the economy worldwide; It is also maintained with solid finances to occupy one of

the first positions in the country with less debt in the world, and with this can be said that its

inhabitants have some of the best quality of life.

Regarding business Hong Kong is in the fourth place of 190 countries that make up the

ranking Doing Business, IE is a country with many facilities and access to do business; The

government is currently seeking to accelerate the signing of free trade agreements, investment

protection and tax agreements with other economies to strengthen the international trade index.

Santander

Macroeconomic análysis of japon

This analysis is of a qualitative and descriptive nature, taking into account the facts and

events within a specific time frame and time frame, thus explaining the macroeconomic figures

according to the behavior of the country's economy. This analysis is based on the qualitative

approach since it uses the collection of data evidenced with solid arguments.

Insular sovereign country of East Asia. Located in the Pacific Ocean with an area of 377,960

km2.

Japan imports 99% of oil, 74% of gas, 98% of iron, 100% of oil and 75% of coal.
Imports: 84,593

Exports: 77,886

Current Account Deficit: 6,707

Primary income: 21,971

Secondary income: -2,001

Reserve Assets: -301

Financial Account: 6,486

MIC data, at 100 million yen.

According to the MIC data, the TRM is of 124.88 / US $ 1.00

Shinzo Abe Japanese Prime Minister, towards the end of 2012 created an economic recovery

program called Abenomics, which had:

- Contractive Fiscal Policy (-Gasto / + Taxes -IVA from 5% to 10%).

- Expansive Monetary Policy (Low rates / + Consumption).

- Exchange Policy: Based on the devaluation of the Yen against the US dollar to favor exporters.

The currency of Japan is the Japanese Yen. For this currency, the most popular exchange rate

is USD-JPY. Japan's economy is based on the production and export of automobiles, industrial

and transport equipment, electronics, chemicals, steel, machine tools, processed food products,

non-ferrous metals, cutting-edge technology, pharmaceutical industry, aeronautics. In the last

years since the crisis of 2012, Japan has implemented an expansive monetary policy with the aim
of boosting consumption and combating deflation. The intervention rate of the BOJ is between

0.0% and 0.1%.

A significant fact is that Japan has returned to show a low unemployment rate around 4%,

motivated by economic growth; the increase of real investment of 1.4% with respect to year 20

and the future expectations of the population, generated by the current political stability.

In my opinion, Japan will not show economic growth values similar to those shown in the 80s,

due to:

- To the increase of the aged population. The retirement age has been increased to 65 years, but it

is not enough to cope with high social spending.

- The immigration barriers that are still in the country.

- The existing gender discrimination in the workplace. The laws against this discrimination have

been reinforced, but today there is still a macho attitude among the Japanese.

The increase of external dependence. That increased from 2011 because of the energy

blackout. A possible solution to reduce this energy dependence, which would reduce the imports

carried out by the country and produce an increase in GDP, would be to promote renewable

energies, such as wind, marine and solar energy.

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