The major markets in Japan would be banking, insurance, real estate, retailing, automobiles and telecommunications. The industrial capacity of the Japanese economy has resulted in the most technologically advanced motor vehicles, electronic equipments, machine tools, steel and various non-ferrous metals, ships, chemicals and processed foods. The distinguishing characteristic of the Japanese economy has included the cooperation of manufacturers, suppliers, distributors and banks in closely-knit groups called keiretsu which has enhanced a composite development process. Japan’s economy is considered to be one most remarkable stories of recovery with averaging about 10% growth over the three decades from the 1960’s- 1990’s. However, the growth has slowed in the post 1990’s period attributed mainly to the asset price bubble and the effect of overinvestment. From the period 2002-06, the economy staged a comeback but lingering fears of a deflation in prices and economic activity persisted.
Some of the key Japanese markets would include: -
Agriculture and food: Because only about 15% is suitable for agriculture, terrace farming is in vogue in Japan. This results in one of the highest crop yields per unit area. The country is self-sufficient in rice and Japan’s import of food crops accounts for about 50% of the total food requirement for the country as a whole. The tiny agricultural sector is however, highly subsidized and protected. In terms of meat and other food, Japan relies heavily on imports. Japan, however maintains one of the largest fishing fleets in the world, accounting for about 15% of the global catch.
Automobile: Japan has the second largest automobile market in the world, with five major manufacturers of vehicles such as Mitsubishi, Mazda, Honda, Toyota and Nissan.
Banking and Financial Services: Japan houses the world’s largest bank, Mitsubishi UFJ Financial Group which has about US $1.7 trillion in assets. It is also home to one of the largest financial services companies, banks and investment groups. Some of the investment groups can be summarized as Sumitomo Bank, Fuji Bank, Mitsubishi Bank, Toyota Financial Services and Sony Financial Holdings.
Stock Exchange: The Tokyo Stock Exchange (TSE) is the second largest n the world and is next to the New York Stock Exchange (NYSE). It lists 2271 domestic companies and 31 foreign companies with market capitalization of about US $ 4trillion. The main index tracking the TSE is the Nikkei.
Labor: The structure of the labor market is greatly affected by the aging of the working population, increasing numbers of women in the labor force, and rising education level or the workers. There is also the added prospect of an increasing number of foreign nationals in the workforce. The change in the labor market structure started in the late 1980’s and persisted throughout the 1990’s.
To sum up, the main exports of Japan are transport equipment, motor vehicles, electrical and electronic machinery and chemicals. Its main export partners are the USA, China, South Korea, Hong Kong and Taiwan. United States accounts for the largest export share with 22.9% as in 2005. The key imports of Japan include machinery and equipment, fuels, foodstuffs, chemicals, textiles and raw materials for its industries. China accounts for the highest import share at 21% as in 2005. China continues to be the largest trade partner for Japan.