F. Economy of Japan

Japan currently holds the title of the 3rd largest economy of the world with a gross domestic product of around $4.309 trillion (2010). They have been focusing on improving their economy since around WW2. After World War II their economy was devastated, they were forced to start over. When they started back again from scratch they noticed that they had little natural resources, so the government started investing in their human capital. They decided to educate all their citizens so that they could contribute to the economy. Once their citizens were educated they were able to start producing high tech devices such as computers, car, communication equipment, and more. They were able to save their GDP from ruins; this is known as the Japanese Economic Miracle. Japan’s current economy currently stands at the 72.8% more market than command economy continuum.


Japan uses its highly educated society to produce transportation equipment, motor vehicles, semiconductors, electrical machinery, chemicals, and coal. However one problem in Japan's economy is that they are too dependent on other countries. Since they don't have enough natural resources to produce the high tech goods, they need to trade with other countries to gain those needed natural resources. On the other hand this encourages more trade between Japan and other countries. Japan is widely known for trading in the following industries; automobile, communication, fishing, and aviation industry.



CNN Video: Experts believe Japan's economy should rise again after massive earthquake
Quick Summary:
  • 3rd largest economy of the world
  • 72.8% more market than command
  • Heavy investment in human capital (education)
  • Japan produces high tech goods in several industries

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