What’s The Secret Of The Buoyant Japanese Economy?

Japan is one of the most developed countries of the world. But it is further developing, that too at a rapid speed. It can easily be placed in the same league as USA, UK, China, etc. 'The land of rising sun' is, indeed, truly living up to its name. The Japanese Economy comes in the top five economies of the world, and that itself tells the story.

Japan is a very industrialized nation. It has many industries that are working continuously for its overall growth. Though Japan lacks in natural resources, and has to import all the raw materials from various other countries, still it is growing at a good pace. The reason being the people of Japan are very hard working. They make full use of the available resources and the raw materials that they import from other countries. They turn their resources into high quality, finished products with the help of their highly advanced techniques and technology.

Japan has a free market economy. This gives everyone an equal opportunity to setup industries in htre country. Complete FDI (Foreign Direct Investment) is allowed in Japan. There is no restriction on the businesses. Hence, they can trade without any major problem throughout the country. This gives Japan an edge over other countries. The stiff competition in every sector in terms of quality as well as prices further give Japan an advantage over its competitors. And this proves to be very beneficial for the consumers of Japan. It also proves good for the overall growth of its economy.

Japan has been placed as the third country on Purchasing Power Parity (PPP) after USA and the Republic of China. This means that the people of Japan are the third highest purchasers in the world. In the other words, the purchasing power of people of Japan is the third among all the countries of the world. This can also be interpreted as Japan being the third richest nation in terms of purchasing power. Japan is also the second largest country in terms of market exchange rates.

As already discussed, Japan has an industry based economy. This means that it is basically dependent on its industries. The main sectors of Japan, on which its economy is based, include among other things, manufacturing, construction, real estate, distribution, services, and communication. The major imports of Japan include raw materials of various kinds like oil, foodstuff, and wood other than wrought iron, besides petroleum products.

There are many products and goods that Japan exports to the world. The major share of its foreign exchange comes from this trade. The major exports of Japan are cars, electronic devices and computers.

These factors combine together to make the Japanese Economy the envy of the world.