¿Why did we chose Japan?

¿Why did we chose Japan?

Japan is an island country in east Asia, located in the Pacific Ocean, their key economic sectors are technology development, manufacturing and industrial.

The economy of Japan has been facing hard times since 2008, showing recessionary symptoms. Government stimulus packages have helped the economy recover a bit; another external factor that hit the economy was the massive earthquake in 2011 that gave the already fragile economy another jolt. We believe that analyzing the economy of Japan will help us understand the direct relationship this economy has with financial factors within globalization, thus allowing the readers understand how the economy of Japan behaves around the impacts of globalization.

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As we can see global growth has been disappointing, specially in 2015, slowing 2.4 percent in that period, it is expected to recover at a slower pace than previously envisioned. According to the Real GDP growth shown it is projected that growth will reach 2.9 percent in 2016, 2017.

FACTS AND INDICATORS OVER THE STATE OF THE ECONOMY

We recognize ourselves by the existence of others. International comparison is absolutely necessary to understand the characteristics of any society. Japan is the third largest economy of the world in terms of GDP, which goes to 4.601 trillion dollars, with a population of 127.1 million people according to the data in the World Bank Data.

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PPP = purchasing power parity; e = estimate; f = forecast.

In any country, economic history proceeds as the interaction between domestic and foreign forces. When internal forces hit, the evolution is slow, but when strong external forces manifest, the domestic equilibrium is affected, this is when the country needs to have a proper response in order to have a new dynamic evolution. This is the main reason why we chose Japan, since the economic crisis in 2008 and China’s recession, considered the worst financial crisis in the history of the world, Japan and other countries began to respond this crisis.

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Analyzing the graphic found in the World Bank data, Real GDP growth percentage in high- income economies is below the percentage of the world real GDP growth and developing economies such as Perú or other Latin America countries.

This is an outlook of the impacts of globalization and financial crisis has in all countries. This is the main reason why we chose Japan, since the economic crisis in 2008 and China’s recession, considered the worst financial crisis in the history of the world, Japan and other countries began to respond this crisis.

Real GDP growth

In the above table shows the values of real GDP growth per year and can see that the world grew 2.4% in 2014 and is expected to grow this year by 2.6%.

On the other hand the high - income economies had a slight growth in 2014 of 1.7% and this year is expected to grow by 2.1%.

Finally developing economies grew in 2014, a smaller proportion the previous year, 4.9% and is expected to grow this year by 4.8%.

Importance for the world trade (Ex-, Import), world financial situation (FDI

The importance of the trade balance (exports and imports) is because it allows foreign income and access to different products that the home economy not produce. From 2014 Japan had a negative trade balance of $ 40 billion in net imports. Compared to its trade balance in 1995, when they had a positive trade balance of $ 131 billion in net exports.

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Blue Line: Exports

Red Line: Imports

Japan is the fourth largest export economy in the world. In 2014, Japan exported $714B and imported $754B, with a negative trade balance. The main business of Japan are: Cars (aprox. $93.3B), vehicle parts (aprox $33.9B), integraded circuits($31B), industrial printers (aprox$15.2B) and refined petroleum(aprox. $12.7B). When it comes to imports, Japan imports are: Crude petroleum($116B), petroleum gas($80.1B), refined petroleum ($23.9B), computers($19.7B) and coal briquettes($16.7B).

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