Japan Analysis

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Country Analysis
Japan

Presented by:

Group 5, 2IBM3
Anam Tariq 616978
Katinka Visser 630485
Jeffrey van ’t Schip 625102
Tiffany van der Zon

Published 23/11/2011

Table of Contents
1.General Characteristics4
1.1 Geographics, Demographics & Climate4
1.2 Political Situation5
1.3 Economic Stage5
1.5 WTO organization5
1.6 Language Skills6
2. Japan’s economic structure7
2.1 The output structure7
2.2 Trade flow characteristics10
3.The current and foreseeable macro economic situation12
3.1 The Japanese economy (history)12
3.2 The Japanese business cycle17
4.Special Issues19
5.The Country Risk-index20
6.Appendix22
7.Conclusion24
7.References25
8.Articles26

1. General Characteristics

Royal Boon Edam, founded in 1873, is a Dutch company which supplies revolving doors. It has a worldwide distribution network including factories in China, The Netherlands and the USA and authorized distributors in over 55 other countries. Royal Boon Edam is currently the world market leader in revolving doors. The company desires to enter Japan for further expanding its market position. Therefore it is of great importance to investigate whether the current and future economic situation is attractive enough for Royal Boon Edam and if this is the right moment to enter the Japanese market.

1.1 Geographics, Demographics & Climate
Japan is an archipelago on the eastern edge of Asia. There are four main islands: Hokkaido the largest island which is as twice as large as the Netherlands accounts for 83,500 km2. Together with Hunshu, Skikoku and Kyushu these 4 islands cover 98% of the territory. The remaining 2% consist of nearly 4,000 smaller islands. The total area of Japan is 377835 km2,which is almost 9 times as big as the total area of the Netherlands (41526 km2). The island Honshu is a very important region regarding to economic-, cultural-, media-, and political activities. Especially the capital Tokyo and surrounding area contains the most economic activity and exerts a magic pull particularly on young people. Approximately 30 million people live in the conurbation. The population of Japan is highly urbanizes with 78,5% of the population living in urban areas. This percentage is expected to increase to 82 percent by 2015.

Japan's population was estimated at 127,400,000 in 2005, which is almost 7,8 the population of the Netherlands. The growth rate of the population of Japan is 0,05% against a growth rate of 0,55% in the Netherlands (2005). With Japan in a state of near zero population growth, the population total is expected to decline to 126,000,000 by 2015.

The climate in Japan varies from tropical in south to cool temperate in north but on a whole it can be said that the climate in Japan, is a country of moderate climate. Japan also has a typhoon (also known as hurricanes) season which lasts from late summer to early autumn. Most typhoons that strike Japan arrive in September and generally come ashore in southern Japan and dissipate as they move north. Typhoons later in the season tend to be stronger than typhoons earlier in the season. Any region of Japan can be visited by typhoons.

Japan has a large potential for earthquakes — and tsunamis — because the nation sits atop four huge slabs of the Earth's crust, called tectonic plates. These plates mash and grind together and trigger deadly earthquakes. These mashes and grindings cause for approximately 1500 earthquakes (mostly tremors) every year. The tectonic activities have also created dormant and active volcanoes. Japans’ most explosive volcano is Mount Kirishima which erupted on 14 March 2011.

1.2 Political Situation
Japan has a long history with corruption scandals. The most common scandals were the Lockheed scandal, the Recruits scandal and the sex and money scandals in the Ministry of Finance. One of the most common forms of corruption in Japan is kickbacks for...
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