Japanese Economy TodayJapanese Economy Today

Chapters 19.2 and 19.3Chapters 19.2 and 19.3

““America ni mo America ni mo Makudonaruda ga aru”Makudonaruda ga aru”

““Even in America, they have Even in America, they have McDonald’s!”McDonald’s!”

The Japanese have absorbed foods and The Japanese have absorbed foods and styles from many other nations.styles from many other nations.

The names of many Japanese The names of many Japanese manufactures – for example, Sony and manufactures – for example, Sony and Toyota – are world famous.Toyota – are world famous.

Peter Jennings: Discovery EducationPeter Jennings: Discovery Education

Security and DefenseSecurity and Defense In reaction to WWII, the In reaction to WWII, the

Japanese embraced a Japanese embraced a policy of policy of pacifismpacifism, or , or opposition to the use of opposition to the use of force under any force under any circumstances.circumstances.

Japan’s 1947 constitution Japan’s 1947 constitution renounced war and barred renounced war and barred the government from the government from maintaining a military maintaining a military force. force.

For protection, Japan allied For protection, Japan allied itself with the US.itself with the US.

During the Cold War, the During the Cold War, the US urged Japan to build its US urged Japan to build its own defensive forces. At own defensive forces. At first, Japan resisted the first, Japan resisted the pressure to rearm. In time, pressure to rearm. In time, it did set up a Self-Defense it did set up a Self-Defense Force. Japan bans taking Force. Japan bans taking part in any overseas part in any overseas military action.military action.

When asked to join the When asked to join the alliance, Japan sent money, alliance, Japan sent money, but no troops. After 9-11, but no troops. After 9-11, they have participated in they have participated in limited limited non-fightingnon-fighting role role

Japan and the Global Japan and the Global EconomyEconomy

For decades, Japan has been a key player in the

global economy.

During its economic boom, people from western and nonwestern nations went to Japan to study its business methods and to learn from its success.

BUT: Japan’s recession in 1989 hurt many countries.

The Trade ImbalanceThe Trade Imbalance

The trade imbalance occurred because The trade imbalance occurred because Japan exports Japan exports moremore goods to those goods to those nations than it imports from them.nations than it imports from them.

During the 1980s and 1990s, the issues of During the 1980s and 1990s, the issues of trade imbalance concerned Japan’s trade imbalance concerned Japan’s trading partners. trading partners.

Competitors complain that Japan’s success Competitors complain that Japan’s success is the result of unfair trade policies. is the result of unfair trade policies.

““We Japanese should not We Japanese should not buy the products of the buy the products of the

foreigners!”foreigners!” Most nations have few barriers to trade. Most nations have few barriers to trade.

Japan has many obstacles that make it Japan has many obstacles that make it difficult for foreign companies to sell their difficult for foreign companies to sell their products there.products there.

Above quote demonstrates the attitude of Above quote demonstrates the attitude of Japanese toward imported goods.Japanese toward imported goods.

Under strong pressure in recent years, Under strong pressure in recent years, Japan has made an effort to ease some Japan has made an effort to ease some trade barriers and increase imports. trade barriers and increase imports. However, old attitudes are hard to However, old attitudes are hard to overcome. overcome.

Japan gets criticized!Japan gets criticized!

As an economic superpower, Japan was As an economic superpower, Japan was doing little to help less-developed nations.doing little to help less-developed nations.

In response to criticism, Japan set up In response to criticism, Japan set up programs to help people in developing programs to help people in developing nations gain modern technology and nations gain modern technology and farming skills. farming skills.

Japan had to overcome the bitterness and Japan had to overcome the bitterness and hostility of countries that had suffered hostility of countries that had suffered during the Japanese invasion and conquest.during the Japanese invasion and conquest.

Southeast AsiaSoutheast Asia

Southeast Asian countries fear that Southeast Asian countries fear that Japan is using its economic power to Japan is using its economic power to dominate the region.dominate the region.

For example, Japan provided For example, Japan provided reparation, or payments for damages, reparation, or payments for damages, to nations it conquered during WWII. to nations it conquered during WWII. The payments were not in cash but with The payments were not in cash but with

Japanese goods. Japanese goods. To many SE Asians, Japan seemed to be To many SE Asians, Japan seemed to be

promoting its own industries rather than promoting its own industries rather than making up for past damages.making up for past damages.

Today, Japan is the major trading Today, Japan is the major trading partner of many East Asian and partner of many East Asian and

Southeast Asian nations. Although Southeast Asian nations. Although Japan faces growing competition from Japan faces growing competition from

China, it still holds a dominant China, it still holds a dominant position in the Pacific Rim.position in the Pacific Rim.

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