Preliminary Study Guide for Test 2
                         East Asia and the U.S.

DEFINE AND EXPLAIN THE SIGNIFICANCE OF

 MITI, Zaibatsu, keiretsu, chaebol
 permanent employment, bubble economy
 legal status of Taiwan, S. Korea, Hong Kong, Singapore
 Chiang K'ai-shek, Chiang Ching-kuo, Lee Denghui, Chen Shuibian
 Lee Kuan-yew, Park Chong Hee, Chun Doohwan, Rho Taewoo, Kim Dae Jung
 Kwangju, ladder of development, outsourcing
 Chiang Mai, Bei-dou/Beitou/Peitou
 overseas Chinese
 Multi-Fiber Agreement (MFA)
 dumping, horizontal escalation, moral hazard, panic, non-performing loans

ESSAYS:

1. What are the distinctive features of Japanese business management and practices?  Include factors that are:
 a. internal to the business organization
 b. external links to financial and business institutions
 c. relationships with government.

2. Explain the pros and cons of Japan sending military forces to participate in the U.N. military actions to recover the independence of Kuwait.

3. What is the impact of the end of the cold war on Japan's foreign relations?

4. What is the legal status of Hong Kong, Taiwan, Singapore, and South Korea?

5. Compare the policies of these places with regard to government management and control of the economy.

6. Use the experience of Hong Kong, Taiwan, Singapore, and South Korea to discuss the relationship between democracy and economic growth.

7. Describe the ladder of development.  What products are associated with what levels?  What are the advantages of climbing up the ladder?  At each step, what are the risks?

8. Why would it be normal for East Asian states to have a surplus in their balance of trade with the United States?  How would a balance of  trade be affected by a decline in the value of the dollar?  What other consequences would follow a decline in the value of the dollar?

9. If a country wanted to follow the East Asian strategy of development, what are the necessary policies government must adopt and implement?