$Unique_ID{bob00356}
$Pretitle{}
$Title{Japan
Glossary}
$Subtitle{}
$Author{Melinda W. Cooke}
$Affiliation{HQ, Department of the Army}
$Subject{yen
bank
economic
international
period
sector

}
$Date{1981}
$Log{}
Title:       Japan
Book:        Japan, A Country Study
Author:      Melinda W. Cooke
Affiliation: HQ, Department of the Army
Date:        1981

Glossary

     "administrative guidance"-Government manipulation of the economic
activity of corporations through the issuance of nonbinding decrees backed by
the implied threat that noncompliance could have negative repercussions for
the corporations.

     arbitrage-In finance the practice of switching funds from one type of
short-term investment to another to obtain the best rate of return.

     call money rates-Interest rates on loans between financial institutions
contracted in the call money market for the very short term and repayable on
one day's notice; to be distinguished from the bill-discount rate (for the
three-month commercial bill market) and interest rates for certificates of
deposit. Rates were set by the commercial banks in consultation with the Bank
of Japan and the Ministry of Finance.

     economic dualism-In economic theory a characteristic of many modernizing
societies, where traditional forms of economic activity persist alongside an
enclave of modern manufacturing and finance. Savings generated from the
traditional sector are ideally channeled into the modern sector, which grows
and accumulates capital at a fast rate until the traditional sector is
overwhelmed and brought into the modern system.

     FY-Fiscal year. April 1 through March 31.

     GDP-Gross domestic product. The total value of all final (consumption and
investment) goods and services produced by an economy in a given period,
usually a year.

     GNP-Gross national product. GDP (q.v.) plus the income from overseas
investments minus the earnings of foreign investors in the home economy.

     ringi-Formal name for a system of bottom-up decisionmaking common to
corporations, whereby an interoffice memorandum, ringisho, detailing a
proposal from a lower level manager circulates up the ranks and to related
departments for approval and or amendment before reaching top management for
final action.

     value-added-The value of goods and services produced by an enterprise or
economic sector minus the cost of raw materials, components, and services
purchased from other firms or sectors.

     "window guidance" (madoguchi kisei)-Formal name for the Bank of Japan
policy of setting quotas for lending from the major banks during a period of
tight monetary policy.

     World Bank-The World Bank is a group of three institutions consisting of
the International Bank for Reconstruction and Development (IBRD), the
International Finance Corporation (IFC), and the International Development
Association (IDA). Established in 1945 by the United Nations, the World Bank
in 1982 was owned by the governments of approximately 140 countries, which
subscribe the institutions' capital. The IFC works with the private sector in
developing countries. The IDA operates in the same sectors and uses the same
policies as the IBRD but provides credits only to the poorer developing
countries and on easier terms than those of conventional IBRD loans.

     yen-The national currency (Yen), in coins of 1, 5, 10, and 100 yen and
notes of 500, 1,000, 5,000, and 10,000 yen. From 1945 to 1971 Japan maintained
a fixed parity to the United States dollar of US$1=360 Yen. After a period of
adjustment during the international financial crises of the 1971-73 period,
the value has floated according to movements in the international capital
markets. Average annual exchange rates for the three years 1979-81 were,
respectively, US$1=219.14 Yen, 226.75 Yen, and 220.53 Yen.

     zaibatsu-In the postwar period any major industrial or financial grouping
characterized by a complex arrangement of jointstock ownership,
decisionmaking, and/or marketing. Zaibatsu activities are often managed by
general trading companies. Individual firms within a zaibatsu usually bear a
common corporate name, such as Mitsubishi, in the cases of Mitsubishi Heavy
Industries and Mitsubishi Electric.