Buying Into Japanese And German Exporters
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With the euro down nearly 15% this year and at a two-year low against the U.S. dollar, the world's largest exporting nation is worth a good look. So is another country that has thriving exports in spite of a stronger currency. We're talking about Japan and Germany, respectively, the world's second- and third-largest economies. , Can Debt Consolidation Help You Avoid A Financial Emergency The top lines at leading German industrial companies , Stock Market Advice Learn About The Stock Market How Tobuy Sell Shares are rolling in with impressive numbers for an almost zero-growth economy. , 9 Survival Tips For The Market Shakeout Blues Quarterly sales at Siemens rose 13%, the fastest since 2003. BMW's sales rose by 11% in the third quarter, although high raw-material costs , Monopoly And Mortgage Playing The Game and pricing pressure resulted in weak net profits. A bright spot is Asia, where BMW expects to sell 150,000 cars per year by 2008. Overall, German exports are up for the third-straight month and sales to countries outside of the European Union rose 18% annually from a year earlier. Clearly, the Germans are good at making stuff and selling , How To Find A Good Uk Secured Homeowner Loan it to the world, and the weaker euro is helping spur growth. , Student Health Insurance Is Your Child Covered Germany's DAX stock , What Is Credit Counseling All About index is taking notice and is up nearly 20% year-to-date. Meanwhile, U.S. exports are up a paltry 2% since 2000. Although exports to China are up 35% during this same period, Americans are now buying , 9 Survival Tips For The Market Shakeout Blues seven times more from China than we are selling , Nurse Your Credit Rating With Debt Counseling to them. A good reason why is that, according to research by Morgan Stanley's Stephen Roach, consumer spending , Take Cheap Personal Loans To Avoid High Interest represents 71% of America's gross domestic product. The figure , Home Equity Loan Vs 401K Loan Which Should You Choose is 42% for China and 55% for Japan. Speaking of Japan, the aftermath of the financial , Refinancing And Current Mortgage Rates bubble has obscured the fact that it too, remains an exporting powerhouse, despite a currency that has risen more than 20% since 2002 and 13% this year alone. Just look at Japan's current account , Using An Amortization Schedule For Value surpluses over the past three years: $113 billion in 2002, $136 billion in 2003 and $172 billion in 2004. China is a major market, , Payroll West Virginia Unique Aspects Of West Virginia Payroll Law And Practice and despite political difficulties, bilateral trade , Refinancing And Current Mortgage Rates between China and Japan now exceeds trade , Mortgage Loan Your Mortgage Lender And Their Dirty Little Secrets between Japan and America. A majority of Japan's exports are manufactured goods and components. Fifty percent of its exports to China in 2004 were electrical equipment and machinery, and its top exports to the world include autos, electronic components, optical instruments, imaging equipment and computer parts. Much is made over China's huge trade , Exploring The Different Types Of Boat Insurance imbalance with America, which reached $126 billion in the first eight months of this year. No doubt , How To Find A Good Uk Secured Homeowner Loan a sizable share of Chinese exports to America are chock full of Japanese components. While some of these components were made in offshore facilities, many were made in Japan, which has been able to hold on to its industrial base better than America. How do they do it? First, the Japanese are continually moving up the value-added curve and are careful to keep the R&D and manufacturing of sophisticated components close to home, , Mortgage Loan Your Mortgage Lender And Their Dirty Little Secrets while outsourcing the low-end to low-wage countries. Secondly, even though China's wages are about 5% of Japan's, factory automation has lessened the importance of labor costs. , Credit Debt Management Counseling For advanced high tech products, it accounts , How To Save Money On Credit Cards 8 Easy Tips for only 10% to 15% of total costs. , Subprime Mortgage Loans Online What To Expect Having manufacturing closer to home , Using An Amortization Schedule For Value also shortens new product lead times and increases cooperation between R&D and production teams leading to a crucial edge in staying ahead of its nimble competitors. Supply lines of 2,000 miles can be problematic. Perhaps most important, there is the critical issue of protecting intellectual capital. , Stock Market Advice Learn About The Stock Market How Tobuy Sell Shares Having research, development and production closer to headquarters better protects proprietary technologies. Canon, Sharp, Hitachi, NEC and Toyota are all good plays on Japan's manufacturing edge, while Sony will continue to lag until it boosts its R&D and catches up in product development. The iShares MSCI Japan Index , Student Health Insurance Is Your Child Covered exchange-trade fund , Shareholders Meeting Changing With Times is an attractive option, since it has about 50% exposure to Japan's manufacturing sector with an annual expense , Take Cheap Personal Loans To Avoid High Interest ratio of only 0.59%. Similarly in Germany, the iShares MSCI Germany Index , Benefiting Substantially From Your Ira Early is loaded with that country's top exporters and would be an excellent proxy for overall German export growth. , Nurse Your Credit Rating With Debt Counseling Article Source: http://www.articledashboard.com
Carl Delfeld is head of the global advisory firm Chartwell Partners and editor of the the "Asia-Pacific Growth" newsletter and is the author of "The New Global Investor. , How To Choose A Debt Consolidation Loan " For more information please visit www.chartwellasia.com |
  
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