Japans Economy

1) Japan has an industrialized global free market economy. This means that
Japans economy is a very competitive economic system and the prices for
services and of goods are based on supply and demand. So if a good is in high
demand, it will more than likely cost more than a good that is not. Japans
economy is actually very similar to that of the U.S. The government does not
have a strict hand when it comes to what goods are being produced in Japan,
because as I said before, they have a market economy, where they have more
economic freedom. But the government does expect Japan to use its
resources wisely, to make a profit. Japan is well known for its technological
industry and that is what they usually export to other countries around the
world.

2) Japans economic system is struggling a little bit at the moment. They have
fallen into a recession three times since 2008, and the way the government is
trying to fix their economic problems is by increasing the consumption tax
and increasing exports. The unemployment rate of Japan is 4.1%, and has
actually decreased throughout the years. The population below the poverty
line is 16%, which is pretty high for a smaller country like Japan. Most of the
labor force in Japan is in services (69.8%), working to get products from their
country to another. The GDP of Japan is $4.729 trillion and compared to the
rest of the world they are ranked #5, which is good, they are just trailing
behind India. Japans economic system is very similar to that of the United
States and that is probably why they are both ranked higher than most
countries when it comes to their GDP standings.