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2The Daily Tar Heel Thursday, April 10, 1986
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Dy FELISA NEURINGER
Americans will soon be paying more
for Japanese imports now that the U.S.
dollar is worth significantly less against
the yen, say many economists.
"Prices (on Japanese imports) will
rise, and North Carolina consumers will
pay as much as anyone else," said Jim
Hinkle. director of the International
Division of the North Carolina
Chamber of Commerce.
As for (major) exports, leaf tobacco
won't be affected because buyers want
the high quality of N.C. tobacco and
are willing to pay the price."
Hinkle said that consumers all over
the nation will notice higher prices on
Japanese cameras, television sets and
automobiles in the near future.
Other foreign currencies have been
rising as well, but not as noticeably as
the yen, which has risen close to 30
percent. The British pound and the
West German mark have increased by
By BRUCE WOOD
These days of drastically reduced oil
prices should remain, to be followed by
a gradual rise in prices near the end
of the year, according to Samuel
Schwartz, executive vice president of
In the concluding speech of the
business school's executive lecture
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ACCOMMODATIONS FOR FALL STILL AVAILABLE
close to 7 percent.
We have our largest trade deficit
with Japan about $50 billion in 1985,"
said Hinkle, "and that is why they get
The total U.S. trade deficit for 1985
was close to $150 billion, which was
considerably larger than in 1983 and
1984. For 1985, the U.S. import total
was $361.6 billion; 6 percent more than
1984's $341.2 billion total. The 1985
export total was $213.1 billion.
"The dollar depreciation will ease the
pressure on the North Carolina textile
and apparel industries, giving more
protection for imports," said Professor
Dennis Appleyard with the UNC
Department of Economics.
This depreciation will also stimulate
North Carolina's exports in the areas
of furniture, tobacco, and agriculture,
according to Appleyard.
Many area businesses have already
noticed the impact on prices of
imported Japanese goods.
G upi&1bM stooualdl keep oil prices low, speaker ay
series, Schwartz discussed "The Oil
Price Roller-Coaster or If I'm having
so much fun why am I green?"
The speech outlined the background
of the Organization of Petroleum
Exporting Countries (OPEC) and its
manipulations of the market. It also
explained the causes of the current low
oil prices and speculated on the future.
OPEC succeeded in keeping the price
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Alex Tremel. a salesman at Foister's
Camera Store on Franklin Street said
his store's prices have increased 5 to 15
percent on Japanese cameras because
of the depreciation of the dollar.
Prices in Japanese stereo equipment
have increased 5 to 8 percent across the
board, according to Michael Weiner.
president of Woofer and Tweeter.
"However, there has been no drop in
sales." he said. Weiner added he thought
people were willing to pay a little extra
for a quality product.
The auto industry will definitely be
affected by the rise in the dollar over
the yen, according to Edward M.
Graham, an associate professor with the
UNC School of Business Administra
tion. "In general terms, exports will be
more competitive, and imports will be
more expensive," said Graham. Area
automobile dealers agreed.
"All Japanese cars have experienced
an adjustment in price because of
at $2 a barrel and remained relatively
inactive with the stable oil prices that
followed. But an increasing demand
caused it to become active again a few
years later, according to Schwartz. The
early 1970s brought a worldwide
economic boom which in turn caused
higher prices and a rapid acceleration
of demand for oil. A major turning
point was the Arab-Israeli War of 1973,
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Leaping shops ai
differences between the yen and the
dollar," said Don Cox, president of Cox
Toyota in Chapel Hill. "This has given
the domestic manufacturers the oppor
tunity to raise their prices."
Although the Toyota Corporation
has raised its prices by about 3 percent.
Cox said his business was still strong.
Walter Brown, sales representative
for South Square Motors in Durham,
said Nissan car prices have increased
by 4 percent. That results in an $1,800
increase on Nissan's most expensive
model, a fully loaded 300Z. The current
price for a 300Z is close to $22,000.
Buck Copeland, general manager of
Yates Motor Company Inc. on Franklin
Street-said that American car sales
should improve, but that the rising yen
". . . won't stop import sales too much."
As for the future, Appleyard con
cluded: "The depreciation of the dollar
and the trade deficit are at their peak.
They shouldn't keep rising unless
something unexpected happens."
when OPEC had to assert itself as being
in control, Schwartz said.
wOPEC essentially used two different
methods at the same time," Schwartz
said. "They invoked an oil embargo and
simultaneously increased their prices," .
Schwartz said. "The economic boom
suddenly came to a halt and we were
dealing with recession." .
Schwartz said the next turning point
was in 1 979 with the Iranian Revolu
tion. Five percent of the world's oil was
gone and there was a clamor for oil.
This increase in demand resulted in a
sharp price increase from $12 to $40
per barrel, with a leveling off at $34.
These previously unheard of prices
caused a drop in the demand for oil
and stimulated exploration of other
areas, such as the North Sea and
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Crew was dead, but Challenger
crew cabin went down intact
From Associated Press reports
CAPE CANAVERAL, Fla.
Challenger's crew cabin hit the
surface of the Atlantic Ocean intact
inside the nose section of the space
shuttle after the spacecraft blew
apart on Jan. 28, a federal safety
inspector reported Wednesday.
Most experts do not believe the
astronauts survived the nine-mile
plunge to the ocean. They believe the
seven probably were killed instantly
from the the shock of the explosion
or from aerodynamic forces as the
nose section and enclosed cabin
tumbled from the sky.
Libyan diplomats expelled
BONN, West Germany West
Germany ordered two Libyan diplo
mats to leave the country Wednes
day, but officials said the move was
"OPEC was squeezed; its production
fell about half, with Saudi Arabia
bearing the brunt of the continuing
decrease. They (the audis) concluded
in 1985 that something had to be done,
and their solution; was to increase their
production'quota in OPEC," Schwartz
This overproduction caused the low
oil prices that are present today. The
problems that came with this overpro
duction were hidden though, according
Oil companies could soon discon
tinue searching for petroleum in other
countriesThis would reduce the total
amount of oil being produced, and drive
the prices up once again.
"OPEC would be back in the driver's
seat then and there would be a steep
ascent (in prices)," Schwartz said.
Another possibility that may affect
future oil prices is that OPEC may
become completely reunited in the near
future and agree to manage excessive
'production levels. Scwartz said he
Eastwood elected Carmel mayor
Clint Eastwood, hero of detective films
and spaghetti westerns, proved to be as
big a draw at the polling place as at
the box office as voters turned out in
record numbers to make him mayor.
Smiling broadly, Eastwood said the
triumph "ranks solidly" with his suc
cesses as a director and star. "It's a hit
movie at the moment," he said.
"It'surpMpSg'ancet it's riot
surprist"ie ojD movies and
. . . .
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not directly connected to "indica
tions" of Libyan involvement in the
bombing of a West Berlin nightclub.
A U.S. Army sergeant and a
Turkish woman died in the blast
Saturday at the La Belle discotheque
and 230 people were injured, includ
ing 63 Americans. American officials
have indicated they believe Libya
was behind the bombing.
West German government repre
sentative, Friedhelm Ost, told a news
conference the decision to expel the
Libyans was made after police began
investigating the Saturday bombing
but was not directly connected to the
bombing. He said they had been
under surveillance for some time.
thinks this is unlikely though because
not only would each country have to
adjust its lifestyle at lower production
levels, but also two of the members, Iran
and Iraq, are presently at war.
"It's by no means evident that these
various problems will be resolved; even
though there are various benefits for
their getting together," Scwartz said.
"One does have to worry whether (low
prices) represent a sustainable situation
or just equlibrium. I suggest it's the
He said after enough time has passed,
OPEC will realize it needs to remedy
the situation quickly. They, along with
the "new" oil countires such as Britain,
Norway, and Mexico, will be able to
accept prices at about $20, even though
that represents a sizable reduction from
two or three years ago.
"Let enough of 1986 pass and you're
a hero when you come in and say they
can come up to $20," he said. "With
enough history behind them, maybe
they'll say: 'weVe had enough of this
roller-coaster fun; let's work together.' "
one election said in his victory speech
Tuesday night. "I knew there was a lot
"I think the great turnout of the voters
and the wide margin by which we won
are very important."
According to complete but unofficial
results, Eastwood had 2,166 votes, or
72.2 percent, to 799 votes, or 26.6
percent, for two-time incumbent Char-
I5tte 'Townsend; Two xther candidates
v.ihad?d total of 37 votes or 1.2 percent.
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