A presentation on Country Analysis of Japan

Submitted By:- Veeraj Vashishtha NU - MBA

Submitted To:- Ashutosh Sharma (Associate Professor)

(International Business)

Japan is Earthquak

e Prone

377,835 square kilometers (145,883 square miles)

Highest point on mainland: Mount Fuji (Fujiyama) (3,776 meters/12,388 feet)

Currency Japan’s

Currency

YEN

• Yen is the third most traded currency in the world after US dollar and Euro.

YEN NOTES

Japan – The post war period

Japan attacked US Us dropped atomic bombs on Hiroshima and Nagasaki. War Stopped with agreement and US

supported Japan in trade. Japan began to grow, it set up industries

and started exporting goods, by the end of 1980’s it became the second largest economy of the world.

Economic slowdowns in Japan

OIL Shock in 1970’s In 1974, the economy contracted by

about 1.2 percent of total GDP. Situation worsened when the value of Yen

increased the price of exports, and in global market it became unacceptable.

As a result, GDP growth dropped from 4.4 percent in 1985 to 2.9 percent in 1986.

THE PLAZA ACCORD

Japan and five other nations signed the Plaza Accord in New York.

That agreement called for the depreciation of the dollar against the yen

and was supposed to increase U.S. exports by making them cheaper.

By December 1989, the benchmark Nikkei 225 stock average had reached

nearly 39,000.

Effects of The Plaza Accord•Japanese companies bought assets overseas.

•Japan had a huge trade surplus.

•Japanese bank lowered interest rates. And provided more loans, increasing the paper value of land.

•Stock exchange crashed in 1990 and Japan lost more than $ 2 trillion.

Deregulation of Japanese Economy.

•Economic slowdown of 1990’s forced Japanese Government to deregulate.

•Reforms were made in air transport, consumer goods and finances.

•Manufacturing sector still have some strict rules.

Industry.

Major contributor to the economy is Industry, which includes manufacturing, construction, and mining.

Manufacturing contributes largest to exports, but is dependent on imported raw material and fuel. (24% to GDP).

Services (services such as financial, retail , and tourism), contributes the largest (74.6%).

Agriculture contributes only (1.4%).

Major Exports.

Major exports of Japan include:- Electrical equipment and machinery. Electronics. Telecommunication. Computer devices and parts. Transport equipment and motor vehicles,

non-electrical machinery, chemicals, and metals.

Major Imports.

Japans main imports are machinery and equipment, raw materials, including minerals and fuel (oil, liquefied natural gas, and coal), agricultural products, and fishery products.

GDP growth rate

Human Development Indicator

Japan is ranked 12th in the HDI index amongst 187 nations which shows a positive sign about Japans strategies of keeping their employees happy and developing a workforce which is highly skilled and educated by giving them remarkable health facilities.

Problems faced by Japan.Japans

Population is

getting old as birth

rate is very low

Raw Material

and Fuel

shortage

Tsunami and

Earthquakes are very

Common

Conclusion.

Japan is the third largest economy of the world.

Despite of slowdowns, disasters and natural calamities Japan managed to maintain growth and sustain it’s position.

Japanese economy may face a work force problem in year 2035.

But as the economy has always shown miracles it can be seen as a good investment destination.