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Economy of Japan - Essay Example
Pages 13 (3263 words)
Japan is located in East Asia, with a total area of 377,835 sq km, its land slightly smaller than the state of California. The country comprises of 3, 000 islands, the biggest of which are Honsh, Hokkaid, Kysh and Shikoku. Its estimated population is 128 million people and is known globally as a leader in high technology products and electronics (CIA World Factbook, 2006 and Economist Intelligence Unit (b), 2006).
The country is also the largest in terms of foreign investment and has successfully sustained a trade surplus for more than five decades. As of 200, the Japanese state holds a sixth of the United States Treasury Securities, which represents about 3.5 percent of the United States' gross domestic product. It is notable that Japan's economic problems can greatly impact the global market (CIA World Factbook, 2006 and Economist Intelligence Unit (b), 2006).
After the Second World War, much of Japan's industries were destroyed. Economic growth was achieved after the War with the strong work ethic of its labor force, sound economic policies and close ties between the government and business sector, efficient and technology-driven industrial methods resulted in one of the most spectacular growth rate averages of 10% in the 1960s. This trend continued in the 1970s and early to mid-1980s, posting average growth rates of 5% and 4% respectively. During the late 1980s, there was a noticeable increase in terms of real state and stock prices which was due to slackening of monetary policies in the middle of the decade and would later result to over-investment. ...