Japan`s Economic Analysis

Japans Economic Analysis

2007 Page 1

Population statistics of Japan

1 ) Current Estimated population 127 ,463 ,611 . Population growth rate estimated for 2006 is 0 .02 . 9 .37 births /1000 population as estimated in 2006 (http /en .wikipedia .org /wiki /Demographics_of_Japan

2 ) Distribution of Population : Age structure is 0-14 years 14 .2 , 15-64 years 65 .7 . 65 years and over 20 estimated in 2006 . For Japan as whole the male to female ratio as estimated in 2006 is 0 .95 males /females . In July 2000 78 .7 lived in urban areas

. Immigration rate as estimated for 2006 is 0migrants /1000 population . 0 .6 of the population is ethnic groups consists of Koreans , Chinese and other native Japanese minority groups (http /en .wikipedia .org /wiki /Demographics_of_Japan

Economic Statistics and Activity

1 ) Financial : GDP Expenditure at chained (2000 ) yen at Quarter 4 2006 142 ,317 .0 Billion Yen ( HYPERLINK "http /www .stat .go .jp /English /19 .htm http /www .stat .go .jp /English /19 .htm . Per Capita Income Estimated Purchasing Power Parity per capita income for 2005 for Japan is US30 615 and it is ranked 16 according to this measure

( HYPERLINK "http /en .wikipedia .org /wiki /List_of_countries_by_GDP_ (PPP )_per_capita http /en .wikipedia .org /wiki /List_of_countries_by_GDP_ (PPP )_per_capita br

Distribution of wealth and income statistics is unavailable . However the income and wealth is distributed unevenly between different classes Consumer Price Index based on 2005 Average 100 for DEC 2006 is 100 .2 HYPERLINK "http /www .stat .go .jp /English /19 .htm http /www .stat .go .jp /English /19 .htm

2 ) Transport and communication : Modes of transport are Passenger car Bus /Coach , Railway , tram /metro , waterborne , Air travel ( HYPERLINK "http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_0 0_The_Innovative_Railroad_8_7_06 .pdf http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_00 _The_Innovative_Railroad_8_7_06 .pdf . Fright transport modes : Road Rail and Air . In 2001 the usage in billion pkm for passenger transport Passenger Car 753 , Bus Coach 86 , Railway 385 , Tram /metro 33 , Waterborne 4 , Air Domestic 81

( HYPERLINK "http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_0 0_The_Innovative_Railroad_8_7_06 .pdf http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_00 _The_Innovative_Railroad_8_7_06 .pdf . Freight transport usage 2001 in billion tkm : Road 313 , Rail 1362 and Air 244 ( HYPERLINK "http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_0 0_The_Innovative_Railroad_8_7_06 .pdf http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_00 _The_Innovative_Railroad_8_7_06 .pdf . Communication systems : telephone Mobile phones . Internet and broadband access services , radio and TV . The use of mobile phone and internet technology is increasing in Japan and digital terrestrial broadcasting of radio and Television is introduced in 2003 and 2006 ( HYPERLINK "http /web-japan .org /factsheet /reg_reform /com .html http /web-japan .org /factsheet /reg_reform /com .html

3 . Minerals and Resources . Japan has few Minerals and Resources and they import minerals from other countries . Minerals and Resources Industry is negligible to other Page : 2

4 .Industry sectors , which contribute to the GDP . Agriculture 1 .3 of GDP in 2005 estimated , Industry 25 .3 of GDP in 2005 estimated , Service sector 73 .5 in 2005 estimated ( HYPERLINK "http /en .wikipedia .org /wiki /Economy_of_Japan http /en .wikipedia .org /wiki /Economy_of_Japan . As Japan is a market economy private sector plays a major role in economic activity than the government

5 . Trade statistics : Export /Import dollar trend : In 1950 's the exports are raw materials and other heavy industry products . In 1970 's the exports shifted to exports of machinery and electronics it increased from 1080 's to 1990 's and fell to some extent due to trade frictions and the set up of companies in Asia , Europe and in US to be more competitive . The exports went to US and China in the current period HYPERLINK "http /web-japan .org /factsheet /trade /exports .html http /web-japan .org /factsheet /trade /exports .html . Imports trend : In recent times the imports of minerals has decreased from 1960 's and 1970 's and imports of manufactured goods from the factories Japan has in China and in US has increased as well imports of computers and information technology products , Consumer electronics products such as television to high demand for such products compared to local electronic products ( HYPERLINK "http /web-japan .org /factsheet /trade /imports .html http /web-japan .org /factsheet /trade /imports .html , Balance of payment trend : Balance of Payments

for Japan was a surplus from mid 1960 's . However the surplus has fluctuated due to stagnation of the Japan economy in combined with the strength of US dollar increased the surplus 1998 to 15 .98 trillion yen Since then the surplus has fluctuated . In recent times the Balance of payments is affected by capital flows and services than merchandise trade

( HYPERLINK "http /web-japan .org /factsheet /trade /balance .html http /web-japan .org /factsheet /trade /balance .html . Trade restrictions are coming down in recent times due to economic reform and globalization of economy in Japan . Non-cash activities or counter trade is minimal on Japan and Foreign Aid is also minimal as Japan is an affluent country As the service sector is more growing in Japan it has opportunities for foreign direct investment in the service sector such as banking wholesale and retail , transport and communication , insurance professional services and in consumer electronics Industry

6 ) Labor

Labor force size in 2006 in ten thousand persons 6657 , Unemployment rate 2006 yearly average 4 .1 , Working conditions : Wages depend on education Age , level and occupation , size of enterprise a person works , other benefits paid and depends on the Industry . No of hours worked is coming down from 1960 up to now . Accidents in workplace are also minimal . Paid leave and flexible working hours are becoming a norm in most of the enterprises . Bonus payments are also paid to employees in Japan Employee participation depends on male or female and the age HYPERLINK "http /www .jil .go .jp /english /laborinfo-e /library /JapaneseWorkingLifePro 2006-2007 .pdf http /www .jil .go .jp /english /laborinfo-e /library /JapaneseWorkingLifeProf ile2006-2007 .pdf . Employer /employee relations is based on enterprises human resource polices of firms and regulated by labor laws in Japan . Page : 3

Science and Technology

1 ) As Japan is an Industrialized country and its technology is very advanced use computer technology , biotechnology and advanced telecommunication and information technology as well have good research and development institutional framework to innovate new technology and systems in various fields of science

2 ) R D Expenditure to GDP is 3 .17 in 2000 and in 2004 it is 3 .35 (http /www .nsftokyo .org /rm06-04 .pdf

3 ) Japan has a skilled workforce particularly technologically skilled work force due to its educational and training system

Channels of Distribution

1 ) Retailers size varies and it has a variety of small , medium and large retailers in different industry sectors . Japan has complex and long channels of distribution . As a result its mark-ups are higher . Retailers use cash and credit operations and it varies from retail operation to operations . However due to internet and changing consumer preferences the retail chain numbers may increase compared to whole sale outlets (http /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /index2 .html ?h ttp /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /others /distribu tion2004

2 ) Whole sale distributions are larger compared to retailers and in Japan traditionally has

channel distribution system wholesale , retail and then to customer having more stages than from manufacturers to retailers and customer or direct to customer from manufacturer . Due to changes in technology and inter net this may be changing . The markup of wholesalers is high compared to western retailers or wholesalers ( HYPERLINK "http /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /index2 .html ?h ttp /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /others /distribu tion2004 http /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /index2 .html ?ht tp /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /others /distribut ion2004

3 ) In Japan import /export agents are smaller in number as the retailers and wholesalers do the import and export function . However they exist in the market for small to medium manufacturers and for small wholesalers and retailers , as they don 't have the capital and manpower to do import and export functions

4 ) As indicated above as Japan has a complex distribution channel it has considerable warehousing capacity

5 ) Penetration of Rural and Urban markets vary because of Import restrictions and other cultural barriers and custom . However due to reform of markets and reduction of trade and other barriers it is becoming easy to penetrate the market as well due to the technological advances and in customer preferences and affluence and tastes and price Page : 4

Consciousness of Japanese buyers it may become easy to penetrate at least the urban market in the future

Media

In Japan TV , Radio Newss , Magazines are available to most households . The cost , coverage , and reach statistics are not available However Japanese read more newss than magazines compared to other western countries ( HYPERLINK "http /www .nikkei-ad .com /media_data /en /japan_market /j_market_compare .ht ml http /www .nikkei-ad .com /media_data /en /japan_market /j_market_compare .htm l

Bibliography

Web-Japan . Communication Broadcasting . Web-Japan . Japan Fact Sheet Regulatory Reform .22 Feb .2007 HYPERLINK "http /web-japan .org /factsheet /reg_reform /com .html http /web-japan .org /factsheet /reg_reform /com .html

ETP . Insight Outlook . ETP . 22 Feb . 2007 HYPERLINK "http /www .etpgroup .com /visitors /insight-outlook5 .html http /www .etpgroup .com /visitors /insight-outlook5 .html

NEKKEI . Comparison of Japanese Overseas markets . NEKKEI MEDIA DATA . 22 Feb 2007 HYPERLINK "http /www .nikkei-ad .com /media_data /en /japan_market /j_market_compare .ht ml http /www .nikkei-ad .com /media_data /en /japan_market /j_market_compare .htm l

The Japan Institute of Labor Policy and Training . Japanese Working Life Pro 2006 /2007 ' The Japan Institute of Labor Policy and Training . 22 Feb . 2007 HYPERLINK "http /www .jil .go .jp /english /laborinfo-e /library /JapaneseWorkingLifePro 2006-2007 .pdf http /www .jil .go .jp /english /laborinfo-e /library /JapaneseWorkingLifeProf ile2006-2007 .pdf

WIKIPEDIA . The Free Encyclopedia . List of Countries by GDP (PPP ) per Capita . WIKIPEDIA . 22 Feb 2007 HYPERLINK "http /en .wikipedia .org /wiki /List_of_countries_by_GDP_ (PPP )_per_capita http /en .wikipedia .org /wiki /List_of_countries_by_GDP_ (PPP )_per_capita

IBPC OSAKA NETWORK CENTER . Japanese Market News Distribution Channels 2004 . IBPC OSAKA NETWOK CENTER . 22 Feb .2007 HYPERLINK "http /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /index2 .html ?h ttp /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /others /distribu tion2004 http /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /index2 .html ?ht tp /www .ibpcosaka .or .jp /network /e_trade_japanesemarket /others /distribut ion2004

IBM Travel and Transportation . The Innovative Railroad : Solutions for Survival and Growth . IBM 2006 . 22 Feb . 2007 HYPERLINK "http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_0 0_The_Innovative_Railroad_8_7_06 .pdf http /www-03 .ibm .com /industries /travel /doc /content /bin /TTW00072_USEN_00 _The_Innovative_Railroad_8_7_06 .pdf

NATIONAL SCIENCE FOUNDATION TOKYO REGIONAL OFFICE . Report Memorandum 06-04 2005 Survey on Research and Development in Japan : Increase in Expenditures for Five consecutive years . NATIONAL SCIENCE FOUNDATION 22 Feb .2007 HYPERLINK "http /www .nsftokyo .org /rm06-04 .pdf http /www .nsftokyo .org /rm06-04 .pdf

WIKIPEDIA .The Free Encyclopedia . Demographics of Japan . WIKIPEDIA 22 Feb . 2007 HYPERLINK "http /en .wikipedia .org /wiki /Demographics_of_Japan http /en .wikipedia .org /wiki /Demographics_of_Japan

Director-General for Policy Planning (Statistical Standards . Economic and Financial Data for Japan . Ministry of Internal Affairs and Communication . 22 Fe . 2007 HYPERLINK "http /www .stat .go .jp /english /19 .htm http /www .stat .go .jp /english /19 .htm

WIKI[EDIA . The Free encyclopedia . Economy of Japan ' WIKIPEDIA . 22 Feb 2007 HYPERLINK "http /en .wikipedia .org /wiki /Economy_of_Japan http /en .wikipedia .org /wiki /Economy_of_Japan ...