Political/Legal

• Tort reform
The Japanese law of torts originally comprised various elements imported from
different countries. These elements constituted the texts of the 1898 Civil Code,
and were thus much elaborated upon by the courts. In this chapter, the marked
characteristics of the Japanese law of torts are examined from two perspectives: the
mixed nature of the law, on the one hand, and some unique developments which
may constitute a certain originality of Japanese tort law in comparative aspects, on
the other. These two features are both related to how the modernisation of law was
carried out in Japan since the mid-nineteenth century.
https://www.elgaronline.com/display/edcoll/
9781789905977/9781789905977.00026.xml
• Americans with Disabilities Act (ADA) of 1990
In Japan, businesses are prohibited from discriminating against people with
disabilities. Until 2013, Japan did not have a disability rights law equivalent to the
ADA. That year, Japan's Diet passed the Elimination of Discrimination against
Persons with Disabilities Act, which prohibits disability-based discrimination
https://www.boia.org/blog/japans-digital-accessibility-laws-an-
overview#:~:text=In%20Japan%2C%20businesses%20are%20prohibited,which
%20prohibits%20disability%2Dbased%20discrimination.
• Deregulation of utility and other industries
First is the regulation on new entry. The government allowed the agents supplying
the products monopolies: regional monopolies by private companies in the case of
electricity and city-gas, and a national monopoly by a public company in the case
of telecommunications. As a result, they were shielded from pressures coming
from competitors to be more efficient.

Supply of public utilities involve a set of different sub-sectors: for example, in the
case of electricity, it consisted of power generation, power distribution, and power
retail. However, the companies were allowed to vertically integrate these sectors
and were allowed national or regional monopoly in the whole industry.

Second is the regulation on prices. As a result of the monopoly status given, the
prices set by supplying public utilities were subject to regulations by the
government. Therefore, the government introduced a system which required the
companies to submit proposals for any price changes and get them approved by the
government.

Since the industries shows economies of scale, marginal cost is lower than the
average cost so that setting prices at marginal cost will not allow companies to be
viable. As a result, the government required the prices to be set on the basis of their
average costs (full-cost principle).
Third is the requirement of universal service provision. Since monopoly status is
given to the provision of fundamentally important products, it was important for
the government to assure fair and equal provision of public utility to all citizens.
The suppliers were obliged to supply products to those anyone requesting to have
access.

Providing universal services means that they had to bear the cost. The regulation
assumed that cross subsidization would take place between profitable and
unprofitable business areas in their respective industries.

https://www.jcer.or.jp/english/deregulation-of-public-utilities-in-japan
• Increases in federally mandated minimum wages
Japan’s labor ministry is proposing a record increase in the minimum hourly pay
that will push the rate to above 1,000 yen ($7.08) for the first time and help low-
income households tackle inflation.
https://www.bloomberg.com/news/articles/2023-07-29/japan-labor-ministry-
proposes-record-increase-in-minimum-wage
• Taxation at local, state, federal levels
Generally, in Japan, the local inhabitants tax is imposed at a flat rate of 10%.
Japanese local governments (prefectural and municipal governments) levy local
inhabitant's tax on a taxpayer's prior year income

http://crowd.ispringlearn.ru
• Legislation on corporate governance reforms in bookkeeping, stock options, etc.
(Sarbanes-Oxley Act of 2002)
https://kpmg.com/cn/en/home/services/advisory/risk-consulting/internal-audit-
risk/sarbanes-oxley-advisory-services.html
• Affordable Care Act (Obamacare)?????
https://www.umhs-sk.org/blog/health-care-around-world-japan

Technological
Genetic engineering
• Three-dimensional (3D) printing
• Computer-aided design/computer- aided manufacturing systems (CAD/CAM)
• Research in synthetic and exotic materials
• Pollution/global warming
• Miniaturization of computing technologies
• Wireless communications
• Nanotechnology
• Big Data/Data Analysis

Demographic
• Aging population
(30%. https://data.worldbank.org/indicator/SP.POP.65UP.TO.ZS?locations=JP)
• Rising affluence
(33815,3$ https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=JP)
• Changes in ethnic composition
Ethnic groups: Japanese 97.9%, Chinese 0.6%, Korean 0.4%, other 1.1% (includes
Vietnamese, Filipino, and Brazilian) (2017 est.)
https://www.indexmundi.com/japan/ethnic_groups.html#:~:text=Ethnic%20groups
%3A%20Japanese%2097.9%25%2C,Brazilian)%20(2017%20est.)
• Geographic distribution of population
The 2023 population density in Japan is 338 people per Km2 (876 people per mi2),
calculated on a total land area of 364,555 Km2 (140,755 sq. miles).
https://www.worldometers.info/demographics/japan-demographics/
• Greater disparities in income levels

29,90(%)
https://ru.knoema.com/atlas/Япония/Коэффициент-Джини

Global
• Increasing global trade
https://www.trade.gov/country-commercial-guides/japan-market-overview
• Currency exchange rates

https://www.x-rates.com/table/?from=JPY&amount=1
• Emergence of the Indian and Chinese
Economies????
https://www.cnbc.com/2023/07/26/imf-raises-2023-economic-growth-forecast-for-
india.html#:~:text=Asia%20Economy-,IMF%20raises%20growth%20forecast
%20for%20India%2C%20which%20is%20set%20to,growing%20major
%20economy%20in%202023&text=The%20IMF%20now%20expects
%20India,year%20and%201%25%20next%20year.
• Trade agreements among regional
blocs (e.g., NAFTA, EU, ASEAN)
Since 2018, Japan and eight other countries (Australia, Canada, Malaysia, Mexico,
New Zealand, Peru, Singapore, Vietnam) signed and ratified the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Two other
countries (Brunei and Chile) are signatories but have not yet ratified the CPTPP.

Japan has 16 bilateral economic partnership agreements (EPAs) with the countries
listed below. Japan has two additional EPAs – one with the European Union and
another with the Association of Southeast Asian Nations (ASEAN).

On November 15, 2020, Japan, along with Australia, China, New Zealand, the
Republic of Korea, and all 10 ASEAN countries signed the Regional
Comprehensive Economic Partnership free trade agreement. The agreement went
into effect on January 1, 2022.
https://www.trade.gov/country-commercial-guides/japan-trade-
agreements#:~:text=Since%202018%2C%20Japan%20and%20eight,not%20yet
%20ratified%20the%20CPTPP.
• Creation of WTO (leading to decreasing tariffs/free trade in services)
Japan has been a WTO member since 1 January 1995 and  a member of GATT
since 10 September 1955.
https://www.wto.org/english/thewto_e/countries_e/japan_e.htm#:~:text=Japan
%20has%20been%20a%20WTO,GATT%20since%2010%20September%201955.
• Increased risks associated with terrorism?

Economic
• Interest rates
The Bank of Japan (BoJ) kept its key short-term interest rate unchanged at -0.1%
and that of 10-year bond yields at around 0% in its July meeting by unanimous
vote but decided to make its yield curve control policy more flexible amid efforts
to improve the sustainability of stimulus policy. The board added the 0.5% ceiling
on yield movements was a reference point rather than a rigid limit. Meanwhile, in a
quarterly outlook report, the BoJ viewed the economy is likely to recover
moderately, supported by pent-up demand. Regarding inflation, the yoy rate of CPI
is likely to decelerate, on the waning effects of past rises in import prices. After
that, the figures are projected to accelerate again as the output gap improves and as
inflation expectations and wage growth rise. The board mentioned it will continue
expanding the monetary base until inflation exceeds 2% and stays stably above the
target. The committee reiterated it will take extra easing measures if needed
https://tradingeconomics.com/japan/interest-rate
• Unemployment rates
Japan’s unemployment rate unexpectedly increased to 2.7% in July 2023 from
2.5% in June, defying market forecasts for no change. This was the highest jobless
rate in four months, as the number of unemployed rose by 110 thousand to 1.84
million in July from the previous month, while employment dropped by 100
thousand to 67.45 million. The labor force increased by 20 thousand to 69.29
million while those detached from the labor force went down by 40 thousand to
40.94 million. The non-seasonally adjusted labor force participation rate remained
at 63.1% in July. Meanwhile, the jobs-to-applications ratio ticked lower to 1.29 in
July from 1.3 in June, pointing to the lowest reading since July 2022.
https://tradingeconomics.com/japan/unemployment-rate
• Consumer price index
Consumer Price Index CPI in Japan increased to 105.70 points in July from 105.20
points in June of 2023. 
https://tradingeconomics.com/japan/consumer-price-index-cpi
• Trends in GDP
The Gross Domestic Product (GDP) in Japan was worth 4231.14 billion US dollars
in 2022, according to official data from the World Bank. The GDP value of Japan
represents 1.89 percent of the world economy
https://tradingeconomics.com/japan/gdp
• Changes in stock market valuations
https://www.gurufocus.com/global-market-valuation.php?country=JPN

Sociocultural
More women in the workforce
44,8%
https://data.worldbank.org/indicator/SL.TLF.TOTL.FE.ZS?locations=JP
• Increase in temporary workers
21.02 million people
https://www2.staffingindustry.com/row/Editorial/Daily-News/Japan-Number-of-
temporary-agency-workers-on-the-rise-in-February-unemployment-rate-improves-
slightly-to-2.6-65073#:~:text=The%20number%20of%20Japan%27s%20non,to
%20data%20from%20Statistics%20Japan.
• Greater concern for fitness
https://baobad.net/articles/yaponskiye-dolgozhiteli-sekrety-dolgoletiya-i-molodosti
• Greater concern for environment
https://ecoportal.info/ekologicheskie-problemy-yaponii/
• Postponement of family formation
According to the statistics of the natural movement of the population of the
Ministry of Health, Labor and Social Security, the average age of mothers at the
time of the birth of their first child, which has remained unchanged at 30.7 years
since 2015 for the sixth year in a row, in 2021 was 30.9 years.