Download Briefing on Japan and Asia/Pacific Rim

Briefing on Japanese
Economy and Business
The 7th Biennial International Business
Institute For Community College Faculty
Toshikata Amino
Visiting Professor
Kansai University of International
Studies, Japan
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Current Status of Japanese Economy
Assessment of the current state of the Japanese
economy (Japanese Government April 07)
The economy is recovering, despite weakness in
industrial production in some sectors.
• Corporate profits are improving and business
investment is increasing.
• The employment situation is improving on a
broader basis, though some severe aspects
remain.
• Private consumption is showing a pickup.
• Exports have been flat and industrial production
flattened recently.
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Japanese Government’s Official
Economic Report
Two Years Ago (April 05)
1 Corporate profit is increasing and also
investment is slowly increasing
2 Consumer expenditure is improving
3 Unemployment ratio is still a concern
however we see a sign of improvement
4 Export is weak and domestic production
is
not increasing
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Trend of GDP
4
Bank of Japan predicts
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Unemployment Rate
Getting better but still high for young people
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Still High Numbers of
Unemployment for Young People
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Bankruptcies-Decreasing
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In the past strong Yen made
Japanese Manufacturers difficult
to export
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Current Weak Japanese Yen
$1 = \119
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Export from Japan
Increasing
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Export and
Import
To which
country and
from where
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Long term interest
U.S. & Japan
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Consumer Price Index
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Decreasing Population
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Number of New babies
and Birth Rate
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Ageing Japan
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Japan is the fastest growing aging country
Life Expectancy
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Increasing National Expenditures for
Medical Cost
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National Medical Cost
Comparison
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Some Impacts of
“Less Young People and More Elders”
• Beer Consumption
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Car Retention
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College Graduation
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Decreasing Labor Forces
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Foreign Labor Forces
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Many College Graduates Leave
Their First Employers Sooner
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Gini coefficient
Country Comparison
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Gini Coeficient
wikipedia
• The Gini coefficient is a measure of inequality of a
distribution. It is defined as a ratio with values between 0
and 1: the numerator is the area between the Lorenz curve
of the distribution and the uniform (perfect) distribution
line; the denominator is the area under the uniform
distribution line. It was developed by the Italian statistician
Corrado Gini and published in his 1912 paper "Variabilità
e mutabilità" ("Variability and Mutability"). The Gini
index is the Gini coefficient expressed as a percentage, and
is equal to the Gini coefficient multiplied by 100. (The
Gini coefficient is equal to half of the relative mean
difference.)
• The Gini coefficient is often used as an income inequality
metric. (See that article for discussion of the social
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Non-formal employees
Part-timers, contracted workers etc
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Inequality of Distribution
Japanese viewpoint
1 It is natural 2 It is natural but I dislike 3 It is a problem but not big
one 4 It is urgent matter to be fixed 5 Others
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Traditional Japanese Business
Practices
• Lifetime employment
• Ranking by seniority
• Company union
How are they changing?
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Lifetime employment
How newly hired young Japanese think?
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Lifetime employment
Japanese companies’ viewpint
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How long people work for one
company in their life (1993)
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Ranking by seniority or by performance
Newly hired employees’ viewpoint
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Company Union
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Thank you for your listening
Questions, Please.
E-mail
[email protected]
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