Search Results

You are looking at 1 - 10 of 56 items for :

  • "dealer network" x
Clear All
International Monetary Fund

Japanese automobile industry, where it has experienced a small amount of import penetration and substantial net exports. The paper concludes that the sales - distribution system limited foreign manufacturers’ access to the dealers owned by domestic manufacturers. Because of the high initial set-up costs to establish new dealer networks, foreign manufacturers depended heavily on the sole representative importers. This dependence may have provided retail price-setting power to these importers, which probably increased distribution margins. The high distribution margins set

Sayuri Shirai

similar products distributed their products through their exclusive dealer networks. These studies reinforced the view that the Japanese distribution system limited foreign firms’ access to the Japanese market by increasing set-up costs, or that it lowered the import market share by enlarging price differences between Japanese and imported products. Such a view made a substantial impact on the Structural Impediments Initiative (SII) talks that began at the end of the 1980s. The purpose of SII talks was to narrow the trade gaps between Japan and the United States by

Sayuri Shirai
This paper surveys the recent literature on the Japanese distribution system to consider two propositions: first, that the system is inefficient, and second that prices of imported products tend to be higher in Japan than in other markets. Most of the literature demonstrates that the system is efficient. However, the efficiency has not necessarily resulted in high social welfare as consumers have had limited access to various product lines or paid high prices for some products. This paper examines the distribution system in the automobile industry to promote understanding about the impacts of the system on price differentials.
Mr. Donald J Mathieson and Mr. Richard D Haas

, Robert Feldman, Peter Isard, Mohsin Khan, G. Russell Kincaid, Ronald McKinnon, and C. Maxwell Watson. The authors are responsible, however, for any remaining errors. 1 While the focus of this paper is on transition economies, many of the proposals advanced are equally relevant for developing countries that are in the process of moving to indirect monetary control. 2 At times, central banks will accept less than the highest price in order to distribute open market operations across a dealer network. 3 Even if a bank presents eligible paper, the central

Mr. D. F. I. Folkerts-Landau

the secondary markets. 8 Primary Dealers If the first two measures fail to generate turnover in treasury bills, then the Central Bank may ask a group of financial institutions to act as primary dealers. Participation in tenders would then be restricted to such dealers. In return, the dealers would be required to make a two-way market in government securities. The dealers might be established as subsidiaries of the commercial banks. They might serve also as market makers in other segments of the money market. Setting up a dealer network would require, of

International Monetary Fund

infrastructure, such as payment, securities trading and settlement systems, is modern and efficient. There is also a primary dealers network to facilitate the trade in government securities. However, the development of the corporate capital market has lagged behind that of the banking sector. Inflation targeting framework 91. Mauritius’s informal inflation targeting regime encompasses five main elements : (1) the public announcement of an annual target for aggregate inflation (CPI inflation) instead of nontradable inflation; (2) an express commitment to price

certain securities for cash. Depending upon the term preferences of the market and coupon rates, selective offers are made to the market at competitive prices. This has provided an instrument of yield curve management even in the absence of a primary dealer network. Other Measures A number of other measures have been taken since 1991 to impact greater flexibility to money and government securities markets. Banks, bank subsidiaries, and financial institutions have been allowed to set up money market mutual funds, though the response so far is lukewarm in the