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International Trade Between Japan and the United States

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International Trade Between Japan and the United States

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  • December 2009
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Japan
1. Executive Summary
Since World War II, Japan started to focus on its economic growth and eventually became the second largest GDP in 1967. Japan is currently the world’s fourth largest exporter and sixth greatest importer in the processing industry and high-technology. As Japan’s position has grown, their political, economical power in the world has grown, too. However, as many Asian and Latin countries’ economical development efforts are growing rapidly, Japan’s former position is threatened. Especially in the case of China, since they opened the market, now they are 4th biggest country in terms of economic size. The biggest reason that China has a big potential is its big market size and huge population. India or China’s economic size can be big, but the national income will be hard to get into high-national income countries group and potential growth limitation will come earlier than other advanced countries had gone through. If densely populated country such as China becomes the highest-national income country, former powerful economic countries such as Japan or the United States will have to give up their wealth in the world market. That is not going to happen in terms of earth energy and resources limitation, environmental pollution, and trade or market share. The countries which have developed high-technology, fundamental science and intermediate components, such as Japan, will keep their economic position in the world. For example, even now if Japan stopped making components, then most machineries in the world will not work. The economic growth rate can be small, but Japan will steadily grow with the world’s top foreign exchange holdings and highly advanced technology, overall low political and commercial risks, and proximity to other East Asian countries such as China geographically. It’s not common that foreign companies invest in Japan. However, we can learn and develop from Japan’s successful economic models, policies, and...

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