Thursday, January 24, 2013

Re-Operation of Nuclear Power Plant is Dangerous?

Two years are about to pass since the Great East Japan Earthquake. Now, big electric power need for revival, therefore the argument on nuclear power plant re-operation is overheated.


Comparison with Other Power Plants of Safety


As for the nuclear power plant, the safety is regarded as questionable as there was an accident of the Fukushima nuclear power plant. When it separates from management of man by a certain way, meltdown is started when the worst. However, what kind of result is obtained in this as compared with other power generation methods? For example, many metal miners have died from coal extraction at coal-fired power generation. In the inside of a coal tunnel, the particulates of coal are dancing, and there is a risk of burning explosively by some rhythm. Even if it is not an accident from explosion a miner will be exposed to a dangerous state by spouted water or emitted gas on the underground. There was a coal mine accident in which 100 or more persons are killed in even in recent Japan repeatedly. Now, in the world, no less than 30,000 people pass away in the coal mine accident every year. Compared with this, the nuclear power plant has the track record outstanding in respect of the fatal accident, about tens of people who are the fire brigade member or the soldier were only directly killed in the Chernobyl accident. In a Chernobyl accident, since citizens' death increased by the rise of cancer cases, it is presumed that 4000 persons were killed in the accident. The accident has occurred more frequently than a nuclear power plant disaster, and immense damage has come not only out of coal but out of mining of oil at every time by sea pollution etc.


Economical Consideration of Nuclear Power Plant


It is said that the power costs of a nuclear power plant are often cheap, however is it truth? When power costs including construction costs, a maintenance cost, etc. of plant are compared, there is almost no difference of a nuclear power plant and thermal power generation. Power costs per kWh of nuclear power plant is about 8.9 yen, coal fire power is about 11.2 yen, hydraulic power is about 9.6 yen and LNG fire power is about 10.6 yen. And a nuclear power plant-related subsidy, such as a nuclear fuel cycle paid for a tax, is not contained in this trial calculation. In fact, the power costs of the nuclear power plant are large with such a tax. However, since the fuel cost itself becomes cheap, an electric power company wants to re-work the nuclear power plant in which power costs are lower than fire power. The situation where the messages of the nuclear power plant promotion by an electric power company "nuclear power generation is safe and clean" are sent in large quantities has been built through mass media. However, when abolition or the situation where it does not re-work continues a nuclear power plant, stagnation of Japanese economy may be caused. In addition to the shortage of electric power supplies, all the nuclear power plant stops of each electric power company caused increase in power rates, and have dealt a big blow to the industrial world. A little influence of a nuclear power plant stop is expanded not only to secondary industry, such as automotive manufacturing, but to primary industry, such as agriculture, and tertiary industry.





Tuesday, January 22, 2013

Overseas Relocation Makes Profits?

The concern over deindustrialization has become strong ignited by the Great East Japan Earthquake. First of all, why does a company establish a subsidiary in a foreign country?


Market Expansion Type Oversease Relocation


There are two patterns in the overseas expansion of Japanese companies. It is whether  relocate as a seller, or to relocate as a maker. Relocating as a seller, i.e., product, and build a sales base abroad. The high-growth era was the time when this just began. If cheap and good goods are made, it will attract attention also overseas, and will begin export via a trading company. And distributor is found abroad, when volume of sales is increased, an overseas subsidiary is established and expanded, and it is begun to make the product of specification for overseas. In such cases, it is mainly business and a marketing department that is engaged in foreign operations, and it is restricted to production-model products as a kind of goods. Therefore, Japanese people are only in an overseas branch as an administrator, and the center of corporate activity is established in Japan in many cases.


Factory Extensive Type Oversease Relocation


Another overseas expansion pattern is the advance as a maker, i.e., overseas factory deployment. Since part supplier shifts abroad to compensate for a major manufacturer doing overseas expansion, the companies may be made to shift abroad in the form that they are not willing. Or they tries to move a factory to overseas themself. Conversely, why doesn't it have a factory in Japan? To close to the place of production of materials, it is surely one reason. It is more rational than to spend transportation cost to carry materials to Japan for the steel industry, medicine business, etc. which are greatly dependent on materials by the material industry to manufacture there. On the contrary, there is a reason for building an overseas factory, since it is close to a consumer place. If cheap mass consumption goods are carried from Japan, they are inefficient. Making there and selling there is also one method. In this case, the product for Japanese markets will be made in Japan.


Reason for Avoiding Japan


Also besides having stated in the top, there is an enterprise with which is most elated at Japan's manufacturing industry, and most anxious about an overseas outflow. It is a high-value-added product which requires production technology, need to receives customer's noisy liking, and its specification is various. In Japan, overseas relocation of a factory has been large fashion since the depression of the 90s. It is a simple reason of since the manufacturing cost is cheap in almost cases. The cost of high-value-added product consists of a material cost, labor costs, and expenses. A labor-cost ratio is overwhelmingly large in it, therefore, a price changes in most proportion to the increase and decrease. It is also a risk of quality or a dead stock, and low wages of exchange.On the other hand, the phenomenon called Japanese revolution of the manufacturing industry has also occurred. Even though it is performing many manufacturing processes in foreign countries, it is because the metal parts which require high accuracy still must be manufactured in Japan. Furthermore, in order to meet various needs, carrying out the neighborhood of the spot of design to manufacture more is also thought as important.





Wednesday, January 9, 2013

Why Does a Strong Yen Receive Attentions?

Recently, the price movement of the exchange rate of the yen is frequently treated on a newspaper, television, etc. In this time, let’s consider the influence of strong yen and happening why.


What is Strong Yen?


The relative value over the other currency of the Japanese yen goes up, and a strong yen refers to the state where the Japanese yen of one unit can exchange for many other currencies. As the Japanese yen of the same amount of money, in the case of $1=80 yen, more dollars can be got and the direction of $1=100 yen will call it a strong yen. Conversely, in the case of 1 dollar = 100 yen, fewer dollars will be got, and it will call them a weak yen. In the two above-mentioned cases, if the price level of Las Vegas is the same, a strong yen make more shopping using the Japanese yen of the same frame, and with low yen, only shopping less than that will be made. It will become glad, if it is a strong yen when you go to travel abroad. Conversely, since same dollar is exchangeable for much Japanese yen if it is a weak yen, for the tourist from overseas, it becomes a desirable situation and the sightseeing industry of Japan profits.



Influence of Strong Yen


What is noticed most simply as influence of a strong yen is a bad influence to an exporter. When a strong yen occurs and the value of yen becomes high, it means that the price of Japanese goods rises for overseas people. As a result, Japanese goods become difficult to sell and export value decreases. The exporter whose sales decreased is pressed for cost reduction, and is connected to payroll reduction of the employees who work there. Furthermore, since it becomes the downward pressure of prices, it is worried also about the influence on deflation. On the other hand, what is the good influence by a strong yen? On the contrary, it is that the import price from overseas becomes cheap. For this reason, for the manufacturing industry which has imported and processed resources, materials, etc. from foreign country, the cost price can be held down low and it is connected to the profit rise. Moreover, also when Japanese companies march out to the United States and Asian nations, such as China, they can buy the land of the spot at a low price, or there are also merits, such as becoming easy to carry out company buyout. And so the phenomenon similar to this has occurred also in the tourist industry.



Cause of Strong Yen


There are two factors of the present sharp rise of the yen. One is that it is a weak dollar by the U.S. quantitative easing policy, and that became weak Euro by the crisis of Euro and worth of the Japanese yen went up relatively. Secondly, it is only Japan which does not demote worth of currency although every country in the world has demoted it from door to door. If Japanese potential growth rate to be 2%, it is necessary to increase money supply 4~5% every year, but it is not doing. Therefore, failure of the financial policy of the Bank of Japan has caused a strong yen.




Tuesday, January 8, 2013

Should nine articles revise or not?

Jiminto which won by the Lower House election to which voted on the December 12 pledges revising Article 9 of the constitution. In this week, let’s consider the right or wrong of a constitutional amendment.

 

Leading Reform Bill of Constitution


It is nine articles of a second chapter that are told to the general public. According to the reform bill of Jiminto which is the most leading now, although pacifism is maintained, the right of self-defense and maintenance of Defense Force is specified in the new constitution. Furthermore, regulation of territorial integrity is established newly, which would be conscious of the territorial problem which arose recently. In this reform bill, declaration of war was not accepted but only the conditions which specify motion of right of self-defense and collective self-defense is added newly. So, this revised constitution is still comparatively peaceful.

 

Right of Collective Self-Defense


For the preceding chapter, it was written that a reform bill had description which accepts the right of collective self-defense (Shu-danteki zieiken). Then, this right of collective self-defense which is often argues is the right to counterattack when the United States which is in alliance with Japan being attacked from a foreign country. This right is not to be accepted in the present constitutional interpretation. So unless the enemy country which attacked U.S. invades Japan, Japan cannot attack the enemy country. In Japan-US Security Treaty, it is said that the Self-Defense Forces cooperate with the U.S. Forces, and it fights when the attack from a foreign country to Japan occurs, and even when the United States receives an attack, Japan haves to do nothing. Instead, Japan provides financial support to the bases, that is said commonly Omoiyari Yosan. However, although there are also many people who think "it is naturally protected by the United States because much money is paid and land is also offered" among the latest Japanese, is that right sure enough?

 

Argument on Revision                                                           


There are other opinion which is opposed to revision, Article 9 of the constitution should be proud of in the world and ought not to revise, it has a possibility that the draft system may revive, and army should be abandoned for peace. The following counterarguments are carried out to this opinion. Japan has some territorial problems, and it works also with neither China nor South Korea, but North Korea is a quite dangerous country. While there are such neighboring countries, it is very difficult to keep the present constitution. Moreover, to Japan abandons an army is not realistic since there is a possibility that the Japan-United States Security Treaty may be canceled, or that since even Switzerland of a permanently neutral state possesses the mighty army. Furthermore, there is the article which draft is forbidden in a draft of Jiminto. Under the present circumstances, it is unthinkable that the draft is performed. Thus, although it is the nine-article revision problem of arguing about various sides, you should cautious of a future trend and when referendum is performed towards revision if compelled, it is important that he thinks earnestly and has a firm opinion.