Economy of Japan

• Kyi Phyu Zin Min
• Ei Kay Khine
• Nang Aye Aye Nyein
• Min Khant Mg Mg

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Economy of Japan

- China- North Korea - South Korea - Russia - Taiwan - The Sea of Japan - The Sea of Okhotsk and - The East China Sea

• An island nation in East Asia.

• Located in the Pacific Ocean.

• Borders

• One of the largest and most developed economies in the world.
• Has a well-educated and industrious workforce.
• Revival from the ashes of World War II.
• Japan was one of the first Asian countries to climb the value chain from cheap textiles to advanced manufacturing and services.

Achieved one of the highest economic growth rates in the world. This growth was led by:

High rates of investment in productive plant and equipment The application of efficient industrial techniques A high standard of education Good relations between labour and management Ready access to leading technologies and significant investment in research and development An increasingly open world trade framework A large domestic market of discerning consumers, which has given Japanese businesses an advantage in their scale of operations.

• Has been the most remarkable, and internationally renowned, feature of Japan’s economic growth.
• Today, Japan is a world leader in the manufacture of electrical appliances and electronics, automobiles, ships, machine tools, optical and precision equipment, machinery and chemicals

Manufacturing

• Has few natural resources and its agricultural sector remains heavily protected.

EXPORTS

Include vehicles, machinery and manufactured goods.

• In 2015-16, Japan’s major export destinations were the United States, China and Republic of Korea.
• Despite a weaker yen as a result of stimulatory economic initiatives, export growth remains sluggish.

• The world's second-largest automobile manufacturing country.
• Toyota is currently the world's largest car maker.

Saudi Arabia (3.7%)

South Korea (4.3%)

Australia (7.1%)

The U.S. (11%)

Mainly imports from-

Main partners are China (23%), the United States (19%), South Korea (7.5%), Hong Kong (5%), and Thailand (4.7%).

China (25%)

• Is the EU’s second-biggest trading partner in Asia after China.
• And together they both account for about a quarter of the world's GDP.
• Signed the Regional Comprehensive Economic Partnership (RCEP), arguably the largest free trade agreement in history (its signatories include China, Australia, South Korea, etc., cumulating about 30% of global GDP).
• The RCEP agreement entered into force on 1 January 2022.

• The currency of Japan has been around for centuries.
• In the 16th century, coins were made from copper, silver, and gold.
• During the Edo period (1603-1867), the Tokugawa shogunate issued paper money called 'senzai' and 'ryō'. In 1871, the Japanese yen was introduced.
• Today, Yen is the official currency of Japan.
• One of the most stable currencies, and is the fourth most held reserve currency in the world.

The History of Japan's Currency

Yen

'ryō'

Tokugawa shogunate

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The Exchange Rate of Japan's Currency

• Is determined by the foreign exchange market, which is the largest financial market in the world.
• Is affected by a number of factors, including the country's economic performance, political stability, and the strength of its currency.
• The Bank of Japan sets the exchange rate of the Japanese yen.
• The Bank of Japan intervenes in the foreign exchange market to maintain the exchange rate at a level it considers appropriate.
• It also uses monetary policy to influence the exchange rate of the yen.

• Is also affected by the country's trade balance.
• When the country imports more than it exports, the value of the yen tends to decrease.
• On the other hand, when the country exports more than it imports, the value of the yen tends to increase.

The Value of Japan's Currency

• Is the official currency of Japan and is used for a variety of transactions. Is used for international trade, investments, and remittances.
• Also used for domestic transactions, such as paying for goods and services.
• Also used for investment purposes, such as buying stocks and bonds.
• The yen is also used as a reserve currency by some countries.
• This means that these countries hold the yen as part of their foreign exchange reserves, which are used to maintain international financial stability.

The Use of Japan's Currency

The Future of Japan's Currency

• The future of the Japanese yen is uncertain.
• The Bank of Japan is likely to continue to intervene in the foreign exchange market to maintain the exchange rate at a level it considers appropriate.
• The future of the yen is also dependent on the country's economic performance, political stability, and the strength of its currency.

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