Abstracts

Agricultural Trade Liberalization and Food Security in Japan
Hitoshi Matsuo, Kanagawa University
Many concerns over food and agricultural problems are produced. For example,
there are abnormal weather, global food price rise, expanding population, rapid
economic growth of developing countries, and biofuels. They give serious impacts on
people’s livelihood, becausefood and agricultural problemsare indispensable for ourlife. Food security has been very important to every country.
Japan is net importer of agricultural products and the long-term foodself-sufficiency ratio has decreased. Japan depends on foreign countries for food toomuch. It is necessary for Japan to secure enough food. It is necessary to importfoodand increase domestic agricultural production. Food security is main policy for
agricultural policy. And international trade and food security have been tied
andfood security hasbeen an important trade policy.
Agricultural trade liberalization and food security face many challenges in Japan.
This paper discusses Japanese food security on the basis on global food situationand trade negotiation of agriculture product in global economy.

A Study on Trends in Usage of Domestic L/CYasunobu Inoue, Sumitomo Mitsui Banking Corporation
Most of the domestic L/C is internationally used at global business. They aremainly used by the trading companies and the foreign-affiliated companies, who use
it in trading schemes that are well devised.
This report is to consider the continuous uses of the domestic L/C by examining
those cases. Also the report would be a reference for those companies having anadvance into overseas market, and farther more to give many hints to banks’policies.

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The Revision of URDG758 and Its Influences upon the International Bank
Guarantee Business.
Masataka Hanaki, Sumitomo Mitsui Banking Corporation“ICC Uniform Rules for Demand Guarantees (URDG) 2010 revision (ICCPublication No.758)” (commonly called “URDG758”) came into force on July 1
2010.The revised rules apply to every demand guarantee, an independent
undertaking for guarantors. However, it is often pointed out that application of thisrevised rule has not widely prevailed yet.
In this paper, the following four points are studied. First, the history of URDGis
reviewed and some problems involved are discussed.

Second, the contents ofrevision are overviewed. Third, the following two controversial issues are examinedthrough scrutinizing some cases of issuance of the letter of guarantee. One issue iswhether the letter of guarantee is a demand guarantee or not. The other issue iswhat the applicable law is and where the jurisdiction place is. Based on the previous
researches, the present conditions on the bank guarantee business and its problems
are considered. Finally, the author would offer some proposals for the bankguarantee business in Japan, considering the influence of this revision.

A Study on the Overseas Loan Asset Securitization Scheme by Bulk
Assignments
Takashi Masuyama, Mitsubishi UFJ Trust and Banking Corporation
This paperdeals with the Japanese banks’ external finance, especially a new type ofinternational project finance securitization scheme by utilizing asset based lending(ABL). The ABL insured by NEXI 1) was originally designed to create more loans tomeetJapanese banks’ funding needsin 2010. This presentation discusses therecent
external finance trend from Japanese banks’ viewpoints. In addition, I will presenta brand-new type of bulk assignments of packaged loans to meet the clients’ needs,and state my own views.

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An Analysis of the Determinants of FDI of Chinese Firms: EmpiricalAnalysis by Gravity ModelTomoe Yasuda
In this study, I analyze the determinants of foreign direct investment of Chinese
manufacturing and service industry firms in 145 countries by using panel data from2003 to 2008. The results show that economic scale and exchange rate have thepositive effect on the FDI and distance has the negative effect on FDI in bothindustries. Additionally, it indicates that population size has positive effect on FDIin manufacturing industry and per capita income has the positive effect on FDI inservice industry.

A Research on the Production Fragmentation and Flying Geese Pattern ofDevelopment: Theory and Evidence
Tadashi Watanabe
The aim of this paper is to try to organize a reply to the criticism against theflyinggeese theory by providing a new flyinggeese model. In this model, a unit of theinternational division of labor is not being treated asan industry but as a production
process. Specifically speaking, focusing on the formation of agglomeration and therelocation of the function of research and development, this model can explain theslowdown, compression and stratification, as well as leapfrogging pattern of theflyinggeese pattern of development.
Moreover, it is argued that this model is also effective in explaining thedevelopment of machinery industry in East Asian countries in recent years byanalyzing of international competitiveness.

Structural Analysis of Export Diversification in East Asia:
Focusing on Changes since the Late 1990s
Jingfei Yu
This paper measures the export diversification level of 9 countries in East Asia177

during 10 years from the levels of nation, industry and purpose. The measurement
is conducted from two perspectives: intensive margin (quantity distribution) andextensive margin (number of new product lines and active product lines). The result
suggests high level of simultaneous horizontal and vertical diversification in all the9 countries of East Asia during the process of hump-shaped diversification. Also, theregional production network in East Asia plays an important role in the formationof this structure.

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