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The article presents an outlook for the impact of a new preliminary draft on corporate foreign exchange operations to be released by the U.S. Financial Accounting Standards Board (FASB). It is expected that corporations that have been showing gains in their quarterly income statements may see major losses under the new rules. Major upward revisions on the asset side of the balance sheets of the foreign subsidiaries of U.S. multinationals doing business in Europe and Japan.

Argues against the prevailing view that strong government and efficient private business are adversaries in the U.S. View of the author that big government and excess regulation damage entrepreneurship; Reference to the examples of the health care, banking and worker training sector wherein it has been proved that government is harming American free enterprises; View of writer Daniel K. Tarullo in a paper published in the Spring, 1991, issue of the periodical "The American Prospect" that stronger government is better able to broker consensual solutions to difficult social problems; Comparison of the governmental system of the U.S. with that of Europe and Japan.

The article discusses the emergence of a new world economic order and its implications for the U.S., Europe, Japan and least developed countries. It discusses the fundamental changes triggered by the shift in relations between the old economic world and the new economic world, including a sharp slowing in world economic growth, a slowing in the rise of world trade and an increase in the productivity of labor relative to capital. It discusses the rise in protectionism with the intensifying competition from the advanced developing countries.

The article looks at the rise of foreign investments, which was caused by the stability of the U.S. dollar and infusing of foreign currencies in the U.S. stock market. Credit Suisse executive vice-president Hans J. Mast told that stocks of Japan had grown by 500 percent since the 1960s, which was 7 percent higher than the U.S. and partially contributed by the 23.4 percent purchase of Japanese stocks by U.S. investors. Experts predicted that European economies would cut inflation and increase interest rates by 1 percent in 1979.

The article reports that America's trade promotion to Eastern Europe is paying off for Western Europe and Japan. It states that Japan and Western Europe are acquiring most of the economic benefits of the increased trade imposed by U.S. officials in the early 1970s. It relates that in 1975, the 11 top industrial nations of Western Europe, along with Canada and Japan, sold over 20 billion U.S. dollars of products to the Soviet Union and its East European associates.

The article reports that stock markets world over are showing uptrends and experts are convinced that 1984 will be a banner year for the prices of stocks in Japan, Europe, and other parts of the world. This is because many indicators of a sustainable world recovery are in place for the first time since 1974. Also, inflation is down and profits are increasing, particularly in basic industries including car and chemical makers in Europe.

The article offers information on automobile exports of Japan to Europe as of April 1980. It cites the increase in market shares of Japanese cars in the nine European Community nation's markets. The success of Japan's auto exports in Ireland, Switzerland and Denmark affected the automobile once dominated by the European brands.