Japan_Suphawan_Gunn.pdf - 1
 Suphawan Gunn Japan and Its...

This preview shows page 1 - 5 out of 11 pages.

Suphawan Gunn 1 Japan and Its Effect to the World’s Economy Suphawan Gunn BJC Cohort B13 Instructor: Dr. Kathleen Young Webster University
Image of page 1

Subscribe to view the full document.

2 Abstract Japan has the second largest developed economy and is very market-oriented. It is the third- largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP). Japan is also a member of the G7. Japan’s economy has played an important role in the world 1 economy since post World War II. The country is also the world's largest surplus and creditor country. Hence the course of economic relations between the United States and Japan plays a critical role in the world economy as well as a central role in overall relations between the two countries. This research focuses on the 3 key economic issues of Japan and explains why it is important to the U.S. and world economies. Retrieved on April 29th, 2018. 1
Image of page 2
3 The Importance of the Japanese Economy Japan is the 4th largest trading relationship for the U.S. behind the NAFTA countries and China, with U.S. companies and agricultural producers exporting more than $100 billion in goods ($63 billion in 2016) and services ($44 billion in 2015) to Japan annually. For many U.S. companies, including USJBC members, Japan is the most important market outside of North America. Japanese consumers often manage their health risks with U.S. branded 2 pharmaceuticals, medical devices or insurance products. U.S. pork, beef and grain producers also ship from the American heartland to Japan every day. Moreover, Japanese government is a major buyer of U.S. weaponry and other hardware for its national defense. In a brief overview, the economic relationship with Japan and U.S.A. today is far less contentious than it has been in the past. This is in part because so many Americans are now employed by Japanese companies. Japan’s cumulative investment of $411 billion in the U.S. has resulted in direct employment of roughly 840,000 high quality jobs, playing average of more than $80,000. 3 U.S. trade deficits with Japan are driven by goods trade, the bulk of which is from manufactured goods. More than half of U.S. goods deficit stems from vehicles, or the auto parts Japan ships to supply its web of production facilities across the U.S.; Japanese car makers in Office of the United States Trade Representative. Executive Office Of the President https:// 2 ustr.gov/countries-regions/japan-korea-apec/japan Retrieved on April 29th, 2018. USJBC, US-JAPAN Business Council page 2, paragraph 4 3 default/files/pacific_partners_2017_final-lr.pdf
Image of page 3

Subscribe to view the full document.

4 2016 assembled 3.9 million vehicles in the U.S., up from 300,000 comparing to 1985. Roughly 4 75% of the Japanese branded cars sold in the U.S. are produced in North America, according to the Japanese government. In 2016, Honda alone, sold a record 1.6 million cars in the United States. The company reported, a 3.2 percent increase over the previous years record. Although 5 Japan has had a stable and strong economy, it is unavoidable that the country has some challenges. Japanese central economic key issues are: Inflation, Shrinking Population and High
Image of page 4
Image of page 5

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern