Exporting

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In 1603, after decades of civil warfare, the Tokugawa shogunate (a military-led, dynastic government) ushered in a long period of relative political stability and isolation from foreign influence. For more than two centuries this policy enabled Japan to enjoy a flowering of its indigenous culture. Japan opened its ports after signing the Treaty of Kanagawa with the US in 1854 and began to intensively modernize and industrialize. During the late 19th and early 20th centuries, Japan became a regional power that was able to defeat the forces of both China and Russia. It occupied Korea, Formosa (Taiwan), and southern Sakhalin Island. In 1931-32 Japan occupied Manchuria, and in 1937 it launched a full-scale invasion of China. Japan attacked US forces in 1941 - triggering America's entry into World War II - and soon occupied much of East and Southeast Asia. After its defeat in World War II, Japan recovered to become an economic power and an ally of the US. While the emperor retains his throne as a symbol of national unity, elected politicians hold actual decision-making power. Following three decades of unprecedented growth, Japan's economy experienced a major slowdown starting in the 1990s, but the country remains an economic power. In March 2011, Japan's strongest-ever earthquake, and an accompanying tsunami, devastated the northeast part of Honshu island, killed thousands, and damaged several nuclear power plants. The catastrophe hobbled the country's economy and its energy infrastructure, and tested its ability to deal with humanitarian disasters. Prime Minister Shinzo ABE was reelected to office in December 2012, and has since embarked on ambitious economic and security reforms to improve Japan's economy and bolster the country's international standing.

Location

Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula

Natural Resources

negligible mineral resources, fish

Population - distribution

all primary and secondary regions of high population density lie on the coast; one-third of the population resides in and around Tokyo on the central plain (Kanto Plain)

127288000
Japanese
TOKYO (capital) 38.001 million; Osaka-Kobe 20.238 million; Nagoya 9.406 million; Kitakyushu-Fukuoka 5.51 million; Shizuoka-Hamamatsu 3.369 million; Sapporo 2.571 million (2015)
Conventional long form
none
Conventional short form
Japan
Local long form
Nihon-koku/Nippon-koku
Local short form
Nihon/Nippon
parliamentary constitutional monarchy
Name
Tokyo
Geographic coordinates
35 41 N, 139 45 E
Time difference
UTC+9 (14 hours ahead of Washington, DC, during Standard Time)
accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features have significantly eroded under the dual pressures of global competition and domestic demographic change.
Inflation
-0.117%
Total tax rate (% of commercial profits)
48.9%
Real Interest Rate
0.758%
Manufacturing, value added (% of GDP)
20.548%
Current Account Balance
US$ 187,264,824,335
Labor Force, Total
65,328,405
Employment in Agriculture
3.45%
Employment in Industry
24.32%
Employment in Services
70.67%
Unemployment Rate
3.14%
Imports of goods and services
US$ 787,151,612,495
Exports of goods and services
US$ 772,993,953,822
Total Merchandise Trade
25.34%
FDI, net inflows
US$ 34,904,736,088
Commercial Service Exports
US$ 168,733,561,395
vegetables, rice, fish, poultry, fruit, dairy products, pork, beef, flowers, potatoes/taros/yams, sugarcane, tea, legumes, wheat and barley
among world's largest and most technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods
Commodities
motor vehicles 14.9%; iron and steel products 5.4%; semiconductors 5%; auto parts 4.8%; power generating machinery 3.5%; plastic materials 3.3% (2014 est.)
Partners
US 20.2%, China 17.5%, South Korea 7.1%, Hong Kong 5.6%, Thailand 4.5% (2015)
Commodities
petroleum 16.1%; liquid natural gas 9.1%; clothing 3.8%; semiconductors 3.3%; coal 2.4%; audio and visual apparatus 1.4% (2014 est.)
Partners
China 24.8%, US 10.5%, Australia 5.4%, South Korea 4.1% (2015)
Country Risk Rating
A2
The political and economic situation is good. A basically stable and efficient business environment nonetheless leaves room for improvement. Corporate default probability is low on average.
Business Climate Rating
A1
The business environment is very good. Corporate financial information is available and reliable. Debt collection is efficient. Institutional quality is very good. Intercompany transactions run smoothly in environments rated A1.
  • Advantageous geographic situation in a dynamic region
  • Very high national savings level (around 23% of GDP)
  • 90% of public debt held by local investors
  • Advanced technology products and diversified industrial sector
  • Difficulties to consolidate public finances and goes out of deflation
  • Reduction of the active population and growing proportion of workers without job security
  • Governmental instability
  • Low productivity of small and medium-sized enterprises

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