Swot Analysis Of Japan

3077 Words13 Pages
1. INTRODUCTION Japan, a country which is just a group of islands but still third largest economy of the world by nominal GDP and forth largest by PPP(Purchasing Power Parity). GDP of $5960 billion and GDP growth rate of -1.80%. Companies like Honda, Toyota, Nissan etc makes it world’s third largest automobile manufacturing country of the world. Other sector which has provided a great boon to their economy is electronics, with companies like Sony etc. Japan is considered to be one the most innovative countries. Japan’s economic history can be analysed by viewing into three different periods 1)Edo Period(1603-1868)- This period brought in Urbanisation which helped in developing the nation as whole. Increased shipping of commodities, expansion…show more content…
High oil prices and new measures to control carbon dioxide emissions would have risen the production costs of Japanese manufacturers. With Japan itself still suffering deflation, the yen was likely to keep rising too, especially while the dollar stayed weak. The biggest drops in GDP and in factory output took place not in America or Britain but in those countries that had remained strong in manufacturing: Germany, Japan and the emerging economies of East Asia. As consumer spending and corporate investment froze up, so demand for durable manufactured goods such as cars, machinery and consumer electronics also dropped like a stone. That is why, in 2009, as was previously mentioned, the biggest falls in real GDP were in Japan and Germany, with drops of about 6% each, roughly double the drop in American GDP during that year. The old idea, that by sticking to manufacturing those economies had avoided the frothy volatility of service businesses and had stayed virtuously hard-working, making real things, was instantly shattered. Far from insulating Japan and Germany from financial shocks, their reliance on manufacturing had seemingly made them more…show more content…
To promote domestic demand, the social protection system needs to be strengthened so as to reduce households’ uncertainty for the future; a more liberal immigration policy should help invigorate private investment in an aging society. To facilitate a better allocation of resources, further deregulatory measures in the more regulated non-tradable goods sector are called for; a substantial lifting of restrictions in agriculture, especially regarding the corporatization of production, would be especially helpful. With little available fiscal space, these measures will help create a climate in which private investment can flourish, driven by final domestic

More about Swot Analysis Of Japan

Open Document