Economics-Entry 9

Toyota Predicts a Hybrid Majority

http://blogs.wsj.com/japanrealtime/2013/04/18/toyota-predicts-a-hybrid-majority/?mod=WSJBlog&mod=japanblog

WSJ, April 18, 2013

Summary

Since Toyota began producing hybrid vehicles in 1997, the demand of hybrid car has been steadily increasing worldwide. At the time Toyota started hybrid car product, they were not able to confidently predict share of hybrid car among vehicle market; however, significant increase in hybrid car proves that Toyota's prediction was right. Despite several big obstacles to overcome, including low share in the U.S. and Europe, hybrid car is the most appropriate alternative for normal cars since electric and hydrogen vehicles are not fully developed to be produced. For the most part, in this trend, people may buy more hybrid cars.

My thought

It is undeniable that people are buying more hybrid cars than the past. Since 2011, Hyundai and Kia also began producing hybrid cars in order to meet the trend, but it seems not as successful as Toyota did in the world market. I reckon Toyota's early action played significant role in starting hybrid trend in automobile market, making Toyota the best hybrid producer as well as seller. If Toyota had not tried to produce hybrids because of risks and let other corps to produce those for people, Toyota would have been also lagged behind the trend and had hard time as Hyundai does.

Economics-Entry 8

Japanese Rush to Sell Gold as Price in Yen Jumps

http://online.wsj.com/article/SB10001424127887323820304578412283865306950.html?mod=WSJ_Markets_LEFTopStories

WSJ, April 9, 2013

Summary

Even though world gold price is decreasing in general, the gold price in Japan is steadily rising. The primary reason for gold price rise in Japan is high Yen price. Skyrocketed price of Yen is triggering the rise of overall metal price in Japan, and people are selling gold due to significant price increase. Government is planning to increase the value of Yen in world market so that it can drop the rising price of gold and other imported products. If it worked successful, Japanese people would began to open their purse that has been shrunk for 10 years.

My thought

Japanese are famous for not spending but saving things in consideration for the future. In addition, the high Yen price is further shrinking consumerism in Japan. For the future of Japanese economy, Japan should encourage people's spending and lead out inflation in Japanese economy. Gold price rise is one incidence that signifies the overall condition of Japanese economy. I hope Japan's vigorous development in the future.

Economic-Entry 7

AirAsia Announces India Hiring Plan

Wall Street Journal, April 3, 2013
http://online.wsj.com/article/SB10001424127887324600704578399871038216436.html?mod=%253C%2525mst.param%2528LINKMODPREFIX%2529

Summary

AirAsia expanded its business into India, one of the most biggest market in Asia. AirAsia began to recruit Indian workers and are still preparing for settling business in this newly emerging market. For the entrance of Indian market, AirAsia formed a partnership with Tata group, one of the most biggest corporations in India and is waiting for government approval until regulation of foreign investment gets relieved. AirAsia's expansion to Indian market would lower market dominance of Air India, domestic airline company.

My thought

AirAsia is predominant in Southeast Asia, including Thailand, and Malaysia; therefore, it is wise for AirAsia to enter Indian market in which consumers prefer cheaper ticket price. As a multinational corporation, further expansion to bigger market is quite risky but necessary step for growth of business. Outsourcing and making a firm in new market may be costly, but I believe that AirAsia would get a tremendous profit when it successfully enter Indian airline industry.