1                        A Country Analysis                                  Of                                JapanSubmit...
2                          ACKNOWLEDGEMENTThis report has been prepared to give a brief introduction of Japan, covering tr...
3Table of ContentsA Brief History ...........................................................................................
4Figure 11 ..................................................................................................................
5A Brief HistoryThe economic history of Japan is one of the most studied for its spectacular growth after theMeiji Restora...
6CLIMATEMost of Japan is in the temperate zone, with the exception of the subtropical southern islandchains. There are fou...
7Demographics Trends and Population StructureAs of March 2009, Japans population is 127,076,183, making it the worlds tent...
8Major Importing Partners and Composition of ImportsThe United States is Japans largest single trading partner. In 1999, i...
9ICTThe ICT industry has broadened its focus beyond manufacturing equipment to maintenanceand management services as well ...
10temporary impact on Japanese exports— plausibly because new facilities set up by Japanesefirms are often equipped using ...
11GDP per capitaThe GDP per capita in Japan was last reported at 39310 US dollars in December of 2010,according to the Wor...
12Balance of TradeBalance of trade is the difference between the imports and the exports of a country. As Japanhas always ...
13    African Development Bank Group (AfDB) (non regional member)    Asian Development Bank (ADB)    Asia-Pacific Econo...
14    International Telecommunications Satellite Organization (ITSO)    International Trade Union Confederation (ITUC) ...
15ConclusionJapan is the third largest economy of the world. With ranking at second spot in carmanufacturing, Japan is the...
16                                    1000000                                    1500000                                  ...
17Figure 2           Merchandise Exports Japan                        Veeraj NU MBA (FMG 061)
18Figure 3           Veeraj NU MBA (FMG 061)
19Figure 4           Veeraj NU MBA (FMG 061)
20Figure 5Figure 6     80,000     70,000                                                                                  ...
21Figure 7     25,000                                                                            China     20,000         ...
22Figure 8Figure 9           Veeraj NU MBA (FMG 061)
23Figure 10Figure 11     400     350                         15 to 64 years old     300                                 15...
24Figure 12Figure 13            Veeraj NU MBA (FMG 061)
25References Links     (1) http://www.doingbusiness.org/data/exploreeconomies/japan/     (2) http://www.venturejapan.com/ ...
26Bibliography     (1) World Bank     (2) Nations Encyclopaedia     (3) Japanese Guide     (4) Trading economics     (5) J...
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Veeraj country analysis japan

  1. 1. 1 A Country Analysis Of JapanSubmitted to:- Submitted by:-Mr. Ashutosh Sharma Veeraj Vashishtha(Faculty Global Business) (MBA Year 1)(NIIT University) (FMG 061) Veeraj NU MBA (FMG 061)
  2. 2. 2 ACKNOWLEDGEMENTThis report has been prepared to give a brief introduction of Japan, covering trade patterns,demographics, laws and regulations, policies by Japanese government. A brief analysis ofbalance of payment and trade is also done to analyse the situation in Japanese economy froman investor point of view and looking forward towards Japan not only as any other nation butas an opportunity to do business. This project has helped us in broadening our perspectives ofthinking as a management graduate. As this project covered all the points, it was not a easyjob to be completed, the analysis of minute things about the economy and trend has helped alot in developing a practical approach towards the subject. At times I felt a chill of anxietyand thrill, but the project included some interesting things as data gathering, data analysis,drawing figures which developed creativity in me and because of which this project became asuccess. The project not only let us think more practically, but also acted as a drop ofknowledge into the vessel of our minds as we were able to figure out what was estimable inthe Japanese economy and what was bad. Though I have mentioned all the things I learntwhile working on this project I would like to mention a name without whom this project wasnot possible. I express my sincere gratitude to our faculty Mr. Ashutosh, whose criticalanalysis from time to time have lead me to develop this report and his able guidance gave thedirection of study and was eager enough to quench my instable thirst of answering to thesmallest of the queries. I shall cherish his help and guidance for a long time to come. Veeraj NU MBA (FMG 061)
  3. 3. 3Table of ContentsA Brief History ................................................................................................................................... 5Country Size ...................................................................................................................................... 5CLIMATE ............................................................................................................................................ 6Ethnic Groups, Languages and Religions ............................................................................................ 6Demographics Trends and Population Structure ................................................................................ 7Major Exporting Partners and Composition of Exports ....................................................................... 7Major Importing Partners and Composition of Imports ...................................................................... 8Economy Sector Composition ............................................................................................................ 8Automotive Parts .............................................................................................................................. 8Retail ................................................................................................................................................. 8ICT..................................................................................................................................................... 9Biotechnology ................................................................................................................................... 9Medical Care ..................................................................................................................................... 9Environment ..................................................................................................................................... 9FDI and Trade .................................................................................................................................... 9Japan GDP growth rate .................................................................................................................... 10GDP per capita ................................................................................................................................ 11Unemployment Rate ..................................................................................................................... 11Currency (YEN) ................................................................................................................................ 11Balance of Trade . ........................................................................................................................... 12Type of Government and Political Conditions .................................................................................. 12Human Development Indicator ........................................................................................................ 12Japan’s membership in International Organizations. ........................................................................ 12Conclusion ...................................................................................................................................... 15Figure 1 ........................................................................................................................................... 16Figure 2 ........................................................................................................................................... 17Figure 3 ........................................................................................................................................... 18Figure 4 ........................................................................................................................................... 19Figure 5 ........................................................................................................................................... 20Figure 6 ........................................................................................................................................... 20Figure 8 ........................................................................................................................................... 22Figure 9 ........................................................................................................................................... 22Figure 10 ......................................................................................................................................... 23 Veeraj NU MBA (FMG 061)
  4. 4. 4Figure 11 ......................................................................................................................................... 23Figure 12 ......................................................................................................................................... 24Figure 13 ......................................................................................................................................... 24References Links.............................................................................................................................. 25Bibliography .................................................................................................................................... 26 Veeraj NU MBA (FMG 061)
  5. 5. 5A Brief HistoryThe economic history of Japan is one of the most studied for its spectacular growth after theMeiji Restoration when it became the first non-European Power and after the Second WorldWar when the island nation rose to become the worlds second largest economy. Thoughthere has been many ups and downs in Japanese economy but because of it’s clear cutpolicies of liberalization and manufacturing Japan has managed to beat the threat of slowingdown it’s growth. Japan is highly earthquake prone and typhoons in Japan are very commondue to this Japan has emerged as a developer of houses that can sustain huge shocks ofearthquakes. Japan was primarily an agrarian economy and later shifted to manufacturing.Manufacturing has been a key element in Japans economic expansion during three periods ofphenomenal growth. First, during the 50-year rise of Japan from a feudal society in 1868 to amajor world power in 1918, output in manufacturing rose more rapidly than that of othersectors. Second, during the 1930s, when Japan recovered from the world depression earlierand faster than any other country and embarked on an aggressive course in Asia,manufacturing, especially heavy industries, again had the highest rate of growth. Third, in theremarkable recovery since World War II, manufacturing, which had suffered severely duringthe latter stages of the war, was again a leader, although commerce and finance expandedeven more rapidly. Even though most of the Japanese industries were destroyed in Hiroshimaand Nagasaki Atomic Bombings, Japan managed to grow at a commendable pace. During the1970s and early 1980s, the rate of Japans industrial growth surpassed that of any other non-Communist industrialized country. Of the 26 largest industrial companies in the world in themid-1980s—those with sales of $20 billion or more—four were Japanese: Toyota Motor,Matsushita Electric, Hitachi, and Nissan Motor. In addition to spectacular expansion in thevolume of output, Japanese industry has also achieved impressive diversity, with maximalapplication of efficiency standards and technological input. In 1997, industry accounted forabout 38% of GDP and 33% of the total labour force.Country SizeThe geographical area of Japan is 377,835 square kilo meters (145,883 square miles) whichaccounts 0.074% area of the whole world, out of which 374,834 km2 (144,724square miles) is land and 3,091 km2 (1,193 square miles) is water. The highest point onmainland is Mount Fuji (Fujiyama) (3,776 meters/12,388 feet) and the lowest point on landis Hachirogata (4 meters/13.1 feet below sea level). The time zone that Japan followsis 9 P.M. = noon GMT. The longest distances is of 3,008 kilo meters (1,869 miles) fromnortheast to southwest; and 1,645 kilo meters (1,022 miles) from southeast to northwest.There are no land boundaries, states or provinces in Japan. Japan has a coastline of 29,751kilo meters (18,486 miles) and Territorial sea limits of 22 kilo meters (12 nautical miles). Thecurrency of Japan is yen (¥) and is equivalent to 100 sen. Yen is issued in coins of 1, 5, 10,50, 100, and 500 yen, and notes of 500, 1,000, 5,000, and 10,000 yen. ¥1 = $0.0083 (or $1 =¥120) as of May 2003. Veeraj NU MBA (FMG 061)
  6. 6. 6CLIMATEMost of Japan is in the temperate zone, with the exception of the subtropical southern islandchains. There are four distinct seasons: winter (December through February), spring (Marchthrough May), summer (June through August), and autumn (September through November.)The average annual temperature is 15°C (59°F) with a winter range of -9°C to 16° C (15°F to61°F) and a summer range of 20°C to 28°C (68°F to 82°F). Humidity is high, ranging from50 percent to 75 percent.The peak rainy season is from May to October, with some regional variations. Yearly rainfallaverages 100 to 250 centi meters (39 to 98 inches). Southern Shikoku Island is particularlyvulnerable to typhoons, which are violent cyclonic storms from the Pacific. In regionsbordering the Sea of Japan, the winter monsoon, laden with snow, can be destructive.Snowfall is generally heavy along the western coast, where it covers the ground for almostfour months. Sometimes typhoons, bringing fresh torrents of water to the rivers, convertwhole plains into vast lakes and sweep away roads and railroads.Ethnic Groups, Languages and ReligionsThe Japanese people originating in the Japan are called as (日本人 Nihonjin, Nipponjin?)archipelago and are the predominant ethnic group of Japan and the people having Japaneseancestry but live in other countries are referred to as nikkeijin (日系人?). There are someother ethnic groups also like Yamato, Ainu and Ryukyuan. The language spoken in Japan isJapanese, The Japanese language is a Japonic language that is sometimes treated asa language isolate; it is also related to the Ryukyuan languages, and both are suggested to bepart of the proposed Altaic language family. The Japanese language has a tripartite writingsystem using Hiragana, Katakana,and Kanji.Domestic Japanese people use primarilyJapanese for daily interaction. The adult literacy rate in Japan exceeds 99%. Japanese religionhas traditionally been syncretic in nature, combining elements of Buddhism and Shinto.Shinto, a polytheistic religion with no book of religious canon, is Japans native religion.Shinto was one of the traditional grounds for the right to the throne of the Japanese imperialfamily, and was codified as the state religion in 1868 (State Shinto was abolished bythe American occupation in 1945). Mahayana Buddhism came to Japan in the sixth centuryand evolved into many different sects. Today the largest form of Buddhism among Japanesepeople is the Jōdo Shinshū sect founded by Shinran. Most Japanese people (84% to96%) profess to believe in both Shinto and Buddhism. The Japanese peoples religionfunctions mostly as a foundation for mythology, traditions, and neighbourhood activities,rather than as the single source of moral guidelines for ones life. Veeraj NU MBA (FMG 061)
  7. 7. 7Demographics Trends and Population StructureAs of March 2009, Japans population is 127,076,183, making it the worlds tenth mostpopulated country. Its size can be attributed to fast growth rates experienced during the late19th and early 20th centuries. Japan experienced net population loss in recent years due tofalling birth rates and almost no net immigration, despite having one of the highest lifeexpectancies in the world at 81.25 years of age as of 2006. The population decreased by183,000 in 2009. Japan is an urban society with about only 5% of the labour force engagedin agriculture. Many farmers supplement their income with part-time jobs in nearby townsand cities. Japanese people enjoy a high standard of living, and nearly 90% of the populationconsider themselves part of the middle class. However, many studies on happiness andsatisfaction with life tend to find that Japanese people average relatively low levels of lifesatisfaction and happiness when compared to most of the highly developed world; the levelshave remained consistent if not declining slightly over the last half century.Major Exporting Partners and Composition of ExportsJapans major trading partners are the Asian Pacific countries, the United States, the EU, andthe Persian Gulf countries. The United States is Japans largest single trading partner. In1999, it accounted for 30.7 percent of Japans exports, an increase from its share of 27.3percent in 1995. As a group of countries, the Asian Pacific countries (South Korea, Taiwan,Hong Kong, China, Singapore, Thailand, and Malaysia) form the largest collective tradingpartner of Japan. In 1999, they accounted for 37.2 percent of its exports, a decrease from their1995 share of 43.2 percent. The Asian financial crisis of the 1990s resulted in a decline inJapans exports to these countries. The EU (especially Germany and the United Kingdom) isJapans third largest trading partner, accounting for a 17.8 percent share of Japans exports,compared to its 1995 shares of 15.9. Major exports of Japan include electrical equipment andmachinery, electronics, telecommunication and computer devices and parts, transportequipment and motor vehicles, non-electrical machinery, chemicals, and metals. In 2000, thevalues of Japans exports were $450 billion. (Refer Figure 1, 2, 4 ) Veeraj NU MBA (FMG 061)
  8. 8. 8Major Importing Partners and Composition of ImportsThe United States is Japans largest single trading partner. In 1999, it accounted for 21.7percent of its imports, a decrease from its 1995 share of 22.4 percent. As a group of countries,the Asian Pacific countries (South Korea, Taiwan, Hong Kong, China, Singapore, Thailand,and Malaysia) form the largest collective trading partner of Japan. In 1999, they accounted39.6 percent of its imports, an increase from their 1995 share of 36 percent. As the main oilsuppliers to Japan, the United Arab Emirates and Saudi Arabia accounted for 5.5 percent ofJapans imports in 1999, a small decrease from their share of 5.9 percent in 1995. The EU(especially Germany and the United Kingdom) is Japans third largest trading partner,accounting for a 13.8 percent of its imports in 1999, compared to its 1995 shares of 14.5percent. Japans economic slowdown of the 1990s reduced its fuel requirements and thereforelowered its imports from the United States and the EU. Its imports are mainly machinery andequipment, raw materials, including minerals and fuel (oil, liquefied natural gas, and coal),agricultural products, and fishery products. (Refer Figure 3 and 5)Economy Sector CompositionThe main contribution to Japanese economy is done by services sector, services sector alonecontributes 74.6% to the GDP, at the second spot is industry which contributes 24% to the GDP.Automotive PartsThe year 2006 was one in which Japan led the world in terms of the number of automobilesproduced. Japanese automobile manufacturers produced more than 20 million unitsworldwide, more than half of which were manufactured in Japan. Moreover, the export rateof domestically produced vehicles exceeded 50%.RetailJapan boasts the worlds second largest retail market, with a value exceeding US$1,124billion. In addition to its size, the enormous influence of Japans retail industry attracts globalattention as being the origin of many Asian trends. For retailers in particular, the Japanesemarket offers an abundance of diverse opportunities to sell products and services that offerluxury, style, convenience and high value. Veeraj NU MBA (FMG 061)
  9. 9. 9ICTThe ICT industry has broadened its focus beyond manufacturing equipment to maintenanceand management services as well as creating audio, video, print and digital content. Thesedevelopments are anticipated to create a variety of new opportunities in Japans ICT market.BiotechnologyIn 2005, Japans biotechnology market was an estimated 1.76 trillion yen, making it thesecond largest in the world, after the U.S. The market is expected to continue to grow andexpected to reach 25 trillion yen by 2010 due to factors such as the aging of society andincreasing health awareness.Medical CareAs Japans population ages more rapidly than that of any other developed country, themedical care and welfare markets in Japan are expected to expand significantly in the future.In response to the publics increased awareness of health issues and the governmentsimplementation of supportive policies, the market is showing signs of developing new fieldsthat include preventive medicine and nursing care services with emphasis on the preventionof age-related diseases.EnvironmentAccording to a survey conducted in 2003 by the Ministry of the Environment, the ecobusiness market is projected to grow from 28.9 trillion yen in 2000 to 62 trillion yen in by theend of 2012. Eco businesses that provide technology, products, or services that contribute tothe protection of the environment play a vital role in the creation of a sustainablesocioeconomic system with a low environmental impact, and the government will continue toactively promote and foster these businesses in the future.FDI and TradeThe shift of Japanese production abroad has stimulated imports from overseas affiliates inparticular, the share of manufactured goods in total imports has grown. Analysis indicates that ahigher stock of Japanese FDI has permanently affected imports—between 1990 and 1995,outward FDI may have increased merchandise imports by around 10 percent. The relationshipbetween FDI and exports is more complex. FDI flows of Japan have a significant impact onexports but that the stock of FDI has no significant effect. In other words, FDI has only a Veeraj NU MBA (FMG 061)
  10. 10. 10temporary impact on Japanese exports— plausibly because new facilities set up by Japanesefirms are often equipped using capital goods from Japan. Once production overseas is on track,however, the finished products that were once exported from Japan will be manufacturedoverseas. It is difficult to determine a prior whether FDI results in a long-term rise or fall in totalexports, but the impact of FDI on the export structure is more clear-cut—exports of capital goodsrise and exports of consumer goods decline. And, of course, exports from firms located abroadincrease as their production increases. (Refer Figure 6 and 7)Japan GDP growth rateThe Gross Domestic Product (GDP) in Japan contracted 0.2 percent in the fourth quarter of2011 over the previous quarter. Historically, from 1980 until 2011, Japans average quarterlyGDP Growth was 0.52 percent reaching an historical high of 3.15 percent in June of 1990 anda record low of -4.90 percent in March of 2009. Japans industrialized, free market economyis the second-largest in the world. Its economy is highly efficient and competitive in areaslinked to international trade, but productivity is far lower in protected areas such asagriculture, distribution, and services. Japans reservoir of industrial leadership andtechnicians, well-educated and industrious work force, high savings and investment rates, andintensive promotion of industrial development and foreign trade produced a mature industrialeconomy. Japan has few natural resources, and trade helps it earn the foreign exchangeneeded to purchase raw materials for its economy. (Refer Figure 8) Veeraj NU MBA (FMG 061)
  11. 11. 11GDP per capitaThe GDP per capita in Japan was last reported at 39310 US dollars in December of 2010,according to the World Bank. Previously, the GDP per capita in Japan standed at 37766 USdollars in December of 2009. The GDP per capita in Japan is obtained by dividing thecountry’s gross domestic product, adjusted by inflation, by the total population. Historically,from 1960 until 2010, Japans average GDP Per Capita was 26593.62 dollars reaching anhistorical high of 40707.00 dollars in December of 2007 and a record low of 7117.79 dollarsin December of 1960. (Refer Figure 10)Unemployment RateJapan is progressing at a high pace and growth of Japan is acclivitous always, Japan hasmanaged to slow down the unemployment rate in 1968 Japan reported a record lowunemployment rate of 1.00 percent in November of 1968. Japan has set up an example bylowering down it’s unemployment rate in front of the world. There has been a lot of researchdone that how can other nations also lower down their unemployment rate, can they alsopractice strategies that Japan follows. The unemployment rate in Japan was 4.60% in January2012. (Refer Figure 11)Currency (YEN)The Japanese Yen (sign: ¥; code: JPY) is the official currency of Japan. It is the third mosttraded currency in the foreign exchange market after the United States dollar and the euro. Itis also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling.As is common when counting in East Asia, large quantities of yen are often counted inmultiples of 10,000 in the same way as values in Western countries are often quoted inthousands. The yen declined during the Japanese asset price bubble and continued to do soafterwards, reaching a low of ¥134 to US$1 in February 2002. The Bank of Japans policy ofzero interest rates has discouraged yen investments, with the carry trade of investorsborrowing yen and investing in better-paying currencies (thus further pushing down the yen)estimated to be as large as $1 trillion (Refer figure 9). Veeraj NU MBA (FMG 061)
  12. 12. 12Balance of TradeBalance of trade is the difference between the imports and the exports of a country. As Japanhas always recorded a trade surplus now it is becoming difficult for Japan to cope up with thesame as there fuel requirements are growing Japan has to import a lot. Japan also faced aTsunami in March 2011, which bought huge losses to human lives, but also slowed down thegrowth as governments budget diverted to rebuilding the areas affected by the tsunami. Japanreported a trade deficit equivalent to 1475 Billion JPY in January of 2012. (Refer figure 12).Type of Government and Political ConditionsJapan is a constitutional monarchy and parliamentary democracy form of government. Theemperor is the symbol of the state, but the executive power is vested in the cabinet whichconsists of ministers who are civilians of the state and prime ministers who must be a Dietmember and appointed by his or her colleague. The type of government Japan has is ofConstitutional monarchy with a parliamentary government. Japan’s constitution was boughtinto practice on May 3, 1947. There are several branches of the governing body in Japanwhich is as followsBranches:Executive—Prime Minister (head of government).Legislative-- bicameral Diet (House of Representatives and House of Councillors).Judicial-- civil law system based on the model of Roman law.Administrative subdivisions: 47 prefectures.Political parties: Democratic Party of Japan (DPJ), Social Democratic Party (SDP),People’s New Party (PNP),Liberal Democratic Party (LDP),New Komeito Party (NK),Japan Communist Party (JCP),Your Party (YP).Human Development IndicatorJapan is ranked 12th in the HDI index amongst 187 nations which shows a positive sign aboutJapans strategies of keeping their employees happy and developing a workforce which ishighly skilled and educated by giving them appraisable health facilities. (Refer Figure 13 )Japan’s membership in International Organizations.Japan is a member of following international organisations. The list is as follows:- Veeraj NU MBA (FMG 061)
  13. 13. 13 African Development Bank Group (AfDB) (non regional member) Asian Development Bank (ADB) Asia-Pacific Economic Cooperation (APEC) Asia-Pacific Tele community (APT) Association of Southeast Asian Nations (ASEAN) (dialogue partner) Association of Southeast Asian Nations Regional Forum (ARF) Australia Group Bank for International Settlements (BIS) Colombo Plan (CP) Council of Europe (CE) (observer) East Asia Summit (EAS) European Bank for Reconstruction and Development (EBRD) European Organization for Nuclear Research (CERN) (observer) Food and Agriculture Organization (FAO) Group of Five (G5) Group of Seven (G7) Group of Eight (G8) Group of Ten (G10) Group of Twenty Finance Ministers and Central Bank Governors (G20) Inter-American Development Bank (IADB) International Atomic Energy Agency (IAEA) International Bank for Reconstruction and Development (IBRD) International Chamber of Commerce (ICC) International Civil Aviation Organization (ICAO) International Criminal Court (ICCt) International Criminal Police Organization (Interpol) International Development Association (IDA) International Energy Agency (IEA) International Federation of Red Cross and Red Crescent Societies (IFRCS) International Finance Corporation (IFC) International Fund for Agricultural Development (IFAD) International Hydrographic Organization (IHO) International Labour Organization (ILO) International Maritime Organization (IMO) International Mobile Satellite Organization (IMSO) International Monetary Fund (IMF) International Olympic Committee (IOC) International Organization for Migration (IOM) International Organization for Standardization (ISO) International Red Cross and Red Crescent Movement (ICRM) International Telecommunication Union (ITU) Veeraj NU MBA (FMG 061)
  14. 14. 14 International Telecommunications Satellite Organization (ITSO) International Trade Union Confederation (ITUC) Inter-Parliamentary Union (IPU) Latin American Integration Association (LAIA) Multilateral Investment Guarantee Agency (MIGA) Nuclear Energy Agency (NEA) Nuclear Suppliers Group (NSG) Organization for Economic Cooperation and Development (OECD) Organization for Security and Cooperation in Europe (OSCE) (partner) Organization for the Prohibition of Chemical Weapons (OPCW) Organization of American States (OAS) (observer) Pacific Islands Forum (PIF) (partner) Paris Club Permanent Court of Arbitration (PCA) South Asian Association for Regional Cooperation (SAARC) (observer) Southeast European Cooperative Initiative (SECI) (observer) United Nations (UN) United Nations Conference on Trade and Development (UNCTAD) United Nations Disengagement Observer Force (UNDOF) United Nations Educational, Scientific, and Cultural Organization (UNESCO) United Nations High Commissioner for Refugees (UNHCR) United Nations Industrial Development Organization (UNIDO) United Nations Institute for Training and Research (UNITAR) United Nations Relief and Works Agency for Palestine Refugees in the Near East(UNRWA) Universal Postal Union (UPU) World Confederation of Labour (WCL) World Customs Organization (WCO) World Federation of Trade Unions (WFTU) World Health Organization (WHO) World Intellectual Property Organization (WIPO) World Meteorological Organization (WMO) World Tourism Organization (UNWTO) World Trade Organization (WTO) Zangger Committee (ZC) Veeraj NU MBA (FMG 061)
  15. 15. 15ConclusionJapan is the third largest economy of the world. With ranking at second spot in carmanufacturing, Japan is the largest manufacturers of electronic goods. Japan has createdhistory by showing a remarkable growth rate even after facing numerous natural calamitiesand the disaster of Hiroshima and Nagasaki bombings during world war second. Sixty eightout of fortune five hundred companies are Japanese. Japan also faced an asset bubble in 90’sdue to high rise in real estate prices but sooner was able to come out of the economicslowdown. Till 2010 Japan was the second largest economy in the world but was surpassedby China. Japan is also earthquake prone and it faced Tsunami in 2011 losing 20000 peopleand killing many. As Japan cannot fulfil fuel requirements and imports a huge amount if it, itseems to be a problem from an investor point of view. Also Japan’s most of the population isaging, so a investor may face workforce problem after a significant amount of time. But thefacts reveal that Japan has never laid down it’s arms in front of any problem whether it beeconomic slowdown, natural calamity, bubble burst or world war. Japanese economy hasalways shown miracles and has been able to set benchmarks and examples in front of theworld so I conclude that Japan can be seen as a good investment decision. Veeraj NU MBA (FMG 061)
  16. 16. 16 1000000 1500000 2500000 3000000 3500000 4000000 4500000 2000000 0 500000 Figure 1 Q1-1987 Q3-1988 Q1-1990 Q3-1991 Q1-1993 Q3-1994 Q1-1996 Q3-1997 Q1-1999 Q3-2000 Q1-2002 Q3-2003 Q1-2005 Japan exports Q3-2006 Q1-2008 Q3-2009Veeraj NU MBA (FMG 061) Q1-2011 Japan
  17. 17. 17Figure 2 Merchandise Exports Japan Veeraj NU MBA (FMG 061)
  18. 18. 18Figure 3 Veeraj NU MBA (FMG 061)
  19. 19. 19Figure 4 Veeraj NU MBA (FMG 061)
  20. 20. 20Figure 5Figure 6 80,000 70,000 China AsiaNIES 60,000 Hong Kong 50,000 Taiwan Korea 40,000 Singapore 30,000 ASEAN4 20,000 Thailand Indonesia 10,000 Malaysia 0 Philippines end end end end end end end end end end end end end end end Vietnam of 96 of 97 of 98 of 99 of 00 of 01 of 02 of 03 of 04 of 05 of 06 of 07 of 08 of 09 of 10 India FDI Outward Stock Veeraj NU MBA (FMG 061)
  21. 21. 21Figure 7 25,000 China 20,000 AsiaNIES Taiwan 15,000 Korea Hong Kong 10,000 Singapore 5,000 ASEAN4 Thailand 0 Indonesia end end end end end end end end end end end end end end end Malaysia -5,000 of of of of of of of of of of of of of of of 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Philippines Vietnam FDI Inward Stock Veeraj NU MBA (FMG 061)
  22. 22. 22Figure 8Figure 9 Veeraj NU MBA (FMG 061)
  23. 23. 23Figure 10Figure 11 400 350 15 to 64 years old 300 15 to 24 years 250 old 25 to 34 years 200 old 150 35 to 44 years 100 old 45 to 54 years 50 old 0 55 to 64 years old Veeraj NU MBA (FMG 061)
  24. 24. 24Figure 12Figure 13 Veeraj NU MBA (FMG 061)
  25. 25. 25References Links (1) http://www.doingbusiness.org/data/exploreeconomies/japan/ (2) http://www.venturejapan.com/ (3) hdrstats.undp.org/en/countries/profiles/JPN.html (4) http://www.japan-guide.com/e/e2195.html (5) http://www.japancorp.net/reports.asp (6) http://www.imf.org/external/pubs/ft/fandd/1997/09/pdf/bayoumi.pdf (7) https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html (8) http://www.actrav.itcilo.org/actrav-english/telearn/global/ilo/globe/japani.htm (9) http://www5.cao.go.jp/keizai1/2012/0124mitoshi-e.pdf (10) http://www.esri.go.jp/en/tie/je1970s/je1970s-e.pdf (11) http://www.jetro.go.jp/en/reports/statistics/ Veeraj NU MBA (FMG 061)
  26. 26. 26Bibliography (1) World Bank (2) Nations Encyclopaedia (3) Japanese Guide (4) Trading economics (5) Japanese Governments sites (6) UNCTAD (7) OECD (8) CIA Veeraj NU MBA (FMG 061)

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