Economics

The Japanese economic is one of the third larges in the world. Until recently the Japanese economy was growing very quickly. Much of this growth was the result of increases in worker productivity. Japan's economy has moved from manufacturing towards services. Its companies have successfully used the countries of Southeast Asia as pools of low cost labor. The change to a more service economy also shows changing tastes of Japanese consumers. As a result, Japan imports most of its food from other countries. Japan has spent more money on oil than any other imported product. Japan's agriculture is characterized by small farms, intensive technologies, great use of fertilizers, and the dominance of rice. Only about 25% of the land area is suitable for agriculture. As a result, farmland is fragmented and limited to narrow coastal plains which widen in three areas: (1) the Kanto Plain around Tokyo, (2) the Nobi Plain, and (3) the Kansai District surrounding Osaka. Fishing and shipbuilding are also large Japanese industries.The amount of land in Japan suitable for agriculture is insufficient to produce enough food for Japan's large population. Yet, the Japanese demand for wood and wood products greatly exceed supply and forest products rank high on the list of imports. Japan's economic successes depended on imported raw materials. Energy resources alone account for 14% of its total imports. Oil is used to meet nearly 60% of Japan's total energy needs.Prior to the war, it was a significant producer of rice, but that changed after the war, with the shift towards manufacturing. Most of Japan's supplies are imported due to the lack of natural resources on the island. [] [] Japan's Trade Policy Bureau is actively executing integrated domestic and external economic policies aiming at maintaining the established world free trade system and to create a business environment in which Japan's economic growth is sustainable and creating high value added. Most goods do not require an import licence and can be imported freely. Japanese import licences are required for certain goods, including hazardous materials, animals, plants, perishables, and in some cases articles of high value. __http://www.hktdc.com/info/mi/a/sbr/en/1X006N03/1/Small-Business-Resources/Trade-Regulations-of-Japan.htm__ Japan's methods of promoting exports has taken two paths. The first was to develop world-class industries that can initially substitute for imports and then compete in international markets. The second was to provide incentives for firms to export. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self sufficient in rice, Japan imports about 60% of its food on a caloric basis. []