JAPAN

Despite its small size, Japan is a major economic power in the modern
world, it currently has the 3rd largest economy in the entire world on trailing
behind only The USA and The Peoples Republic of China.

Japan has some cultural philosophies that they apply to their economy
and that could possibly be a reason for much of their success in the
economic sector.

For instance they have a principle called "Nemawashi" which is where

before making any major change in business you gather the support and
input from all those involved whether it be a manager or a low level employee,
by doing this you gain their support and it makes the change that much easier.
This adaptability helps them to stay competitive in the world market.

Japan does not have much suitable land for agriculture but the land
that they do use has a very high yield and most of it stays in country. Its main
crop is rice and it is heavily subsidized so that they are self-sufficient and
there are high tariffs on any rice imported to decrease competition in the
market.

Japan's largest imports are raw materials for production as well as oil
to fuel their machinery and vehicles. Another major import that cannot be
forgotten is the foodstuffs that they import, things such as meat and wheat
which are vital because of Japan's lack of suitable agricultural land. Japan's
largest import partners are The United States and The People Republic of
China.

The main power behind Japan's economy is its manufacturing

industry. They are world renown for being at the forefront in certain
industries technologically. The areas where they enjoy the most success
are:

-Consumer electronics (Televisions, Mp3 players, DVD players)

-Automobile Manufacturing
-Semiconductor Manufacturing
-Optical Fibers
-Optoelectronics
-Optical media
-Copy Machines
EXPORT: cars, vehicle parts, steel products

Export destinations US CHINA South Korea

Import: Petroleum, gas, Medicaments.

Import origins: China, US, South Korea

In order to support this large manufacturing industry Japan has

focused on maintaining its infrastructure by pumping money into the amount
of roads they have and by investing power in alternative means of energy so
that it does not depend on foreign fossil fuels as much. Japan also has a
very efficient high speed train industry that is famous for being nearly always
on time.

Japan also exports a great deal of things as well but by far its too
largest exports are automobiles and consumer electronics. Japanese
automobiles are sold worldwide and are famous for being reliable and having
low cost.

Japan has one of the worlds largest economies and is able to do so

with its mastery of manufacturing and an investment infrastructure that is
unparalleled and all signs point to continued success for them in these
markets in the future.

Japan has 127 million people. Its GDP per capita is $42,700, or 41st in the
world. That means its standard of living is lower than the United States or the EU,
but higher than China or South Korea.

Japan has a mixed economy based on capitalism, although its government

works closely with industry. In fact, central bank spending equals 18 percent of the
country's gross domestic product. It accounts for almost all of government
borrowing.

Seven Characteristics of Japan's Economy

The following seven factors hinder Japan's growth. Abe must address these
challenges to restore growth.

1. Keiretsu is the structured interdependent relationships

between manufacturers, suppliers and distributors. This allows the
manufacturer monopoly-like power to control the supply chain. It also
 reduces the impact of free market forces. New, innovative entrepreneurs
can't compete with the low-cost keiretsus. It also discourages foreign direct
investment for the same reason.
2. Guaranteed lifetime employment meant companies hired college
graduates who stayed until retirement. The recession made that strategy
unprofitable. By 2014, only 8.8 percent of Japanese companies offered it.
But 25 million workers 45 to 65 are still employed under the system. Most
have outdated skills and are just cruising until retirement. That burdens
corporate competitiveness and profitability by artificially raising wages for
these workers.
3. An aging population means the country must pay out more retirement
benefits than it receives in income taxes from the working population. It hires
temporary workers from nearby South Asian countries but does not welcome
immigrants. That reduces the consumer base. (Source: "Forecasting Japan:
The Failure of Reform," Stratfor Worldview, September 30, 2015.)
4. The yen carry trade is a result of Japan's low interest rates. Investors
borrow money in low-cost yen and invest it in higher-paying currencies, such
as the U.S. dollar. It's one reason the dollar's value soared 15 percent in
2014. A lower yen normally increases the price of imported commodities,
triggering inflation. But plummeting oil prices in 2014 meant the BOJ didn't
have to worry about inflation, and could keep rates low.
5. Japan's massive debt-to-GDP ratio means Japan owes more than twice
as much as it produces annually. The biggest owner of its debt is the Bank
of Japan. That has allowed the country to keep spending without worrying
about higher interest rates demanded by unpredictable lenders.
6. Japan briefly became the largest holder of U.S. debt in 2015 and again in
2017. Japan does this to keep the yen low relative to the dollar to improve
its exports.
7. World’s largest net food importer is because Japan has just one-third as
much arable (suitable for growing corps) land per person as China.

https://www.japan-talk.com/jt/new/japans-economic-miracle

https://www.youtube.com/watch?v=t7eczoBQhYo

https://www.youtube.com/watch?v=pnhWpr3deXU

What Are Raw Materials?

Raw materials are materials or substances used in the primary production or
manufacturing of goods.
Mixed economy is an economic system combining private and state enterprise
(company).