This paper presents the finite element analysis of an interaction problem i
nvolving water, soil, balloon and pile. A building with friction piles is c
onsidered, and balloons are introduced to the top of piles. To control the
vertical displacement of the building, water is injected into or removed fr
om the balloons. The two-dimensional incompressible Navier-Stokes equation
is introduced, and the ALE (Arbitrary Lagrangian Eulerian) method is applie
d to the water flow analysis. The FS (Fractional Step) method is also appli
ed in the finite element formulation. The soil, which is assumed as a linea
r elastic body, is subjected to the deformation analysis. The balloon and p
ile are assumed as a linear elastic truss and a rigid frame, and the deform
ation analysis is also performed. All the components are discretized by the
finite element method in space and are interactively solved by taking into
account continuity conditions of traction and displacement.