PREFACE
Not so long ago Japanese manufactured goods predominated. But now, products from other countries such as South Korea are attracting attention even in India. So what happened to Japan?
Several years ago when I was on a newsgathering visit to India, a simple question posed by a local journalism researcher made me realize that the days when Japanese money flowed around the world and it was fashionable to talk about Japan as No.1 were well and truly gone. Japan's position in the world economy had changed significantly.
Japan's rapid economic growth in the wake of the Second World War was considered a miracle. However, a policy of extreme monetary easing, introduced in response to the rapid appreciation of the yen against the dollar following the Plaza Accord in 1985, triggered an economic bubble. The collapse of this bubble in the 1990s left Japan with budgetary deficits and financial institutions and companies with massive nonperforming loans. Many went bankrupt and the Japanese people suffered from the impact of restructuring as well as a very poor employment market.
Thanks to government policies requiring the injection of public funds into financial institutions and to deregulation, Japan has at last almost sorted out the problems associated with the non-performing loans-but there is still no sign of an end to the massive budget deficit. Since 2002, the country has been experiencing the longest period of economic expansion since the Second World
War, but the accompanying low growth rate has deprived the nation of any sense of economic prosperity. Japan's economy faces a difficult future, marked by increasing social inequality, a declining birth rate and an aging population that is leading to an overall fall in the population.
Meanwhile, the globalization of markets is increasing, and growth is shifting to powerful emerging economies, namely, Brazil, Russia, India and China-the so-called BRIC countries, which are well positioned for growth. That said, there is no need to be overly pessimistic. Japan is the world's second-largest economy in terms of gross domestic
product (GDP) and, if it manages a soft landing without making policy mistakes in dealing with its aging and falling population, it should be able to maintain current levels of prosperity. The Japanese, with their high level of education and a characteristic industriousness should be able to remain leading players on the international stage.
This reference book is designed for use in explaining the economic realities surrounding Japan and its potential to non-Japanese people. The content will enable readers to reply in detail to a variety of questions that they may be asked either in Japan by visitors to the country, or overseas. The information is presented in a straightforward question-and-answer format.
Should the following pages help promote a greater understanding, among people of other cultures, concerning the Japanese economy-not to mention an enhanced insight into, and respect for, Japanese culture-then the book can be considered a success.
100Q&A A English guide to the Japanese economy Part3
- Q101 What revisions have been made to the Equal Employment Opportunity law for Men and Women?
- Q102 Do unfair practices still exist and go unchallenged?
- Q103 ?Isn't there a system for maternity and childcare leave?
- Q104 I? Can men take paternity and childcare leave?
- Q105 The rush hour in and around Tokyo has improved, as new railway lines have gone into operation. Which of the sentences below best describes the lines in and around Tokyo?
(a) When the train moves, your body tilts with it but you can't move your body or hands.
(b) When you knock against someone it makes you feel uncomfortable but it is still possible to read a magazine while standing.
(c) If you fold up a newspaper it is just about possible to read it while standing.
(d) It is possible to open and read a newspaper while standing.
(e) You can either sit down or stand while holding onto a strap or pole
- Q106 Previously, the trains were so crowded that you couldn't move or, if you could, you could just about read a magazine while standing up. Now, however, it's just about possible to read a newspaper while standing. That's quite some prog-ress, isn't it?
- Q107 What was the Ageo Incident?
- Q108 It is in response to this incident that the JR and private railway companies constructed new lines and started to increase the frequency of their services, isn't it?
- Q109 Isn't this overcrowding particularly bad for women?
- Q110 Haven't companies and government offices introduced staggered working hours?
- Q111 Instant noodles, soy sauce and Ajinomoto (seasoning) are well-known internationally, but Japanese food products and food manufacturers are not as well known internationally as Japan's electrical appliance and automobile manufacturers, are they?
- Q112 The law that determines the organizational structure of companies in Japan was revised in May 2006 and is known as the New Company law. What is the smallest amount of capital required to establish a joint-stock company under this law? (a) 1 yen {b) 10,000 yen (c) 1 million yen (d) 1 0 million yen
- Q113 What is the background of the New Company Law?
- Q114 What are the key points of the New Company Law?
- Q115 I What is a triangular merger?
- Q116 I Have internal controls become compulsory?
- Q117 Which of the following represents the total number of Japan's baby-boomers, known as dankai-sedai in Japanese? (a) 2.8 million (b) 4.8 million (c) 6.8 million
- Q118 Japan's birthrate has been falling for some time, so finding the young people to fill the gaps left by retiring baby-boomers will be difficult, won't it?
- Q119 Are companies developing strategies to deal with the 2007 Problem?
- Q120 Has the 2007 Problem had an impact on com-pany employment activities?
- Q121 New businesses are appearing focusing on the retiring baby-boomers, aren't they?
- Q122 As baby-boomers shift from contributing to pensions to receiving them, the financial? resources of the pension system will be stretched thin, won't they?
- Q123 What percentage of Japanese employees are union members? (a) 58.7% (b) 38.7% (c) 18.7%
- Q124 What has caused union membership to fall?
- Q125 ?Is it true that associated trends include the collapse of the lifetime employment system, increasingly fluid labor markets, and changes in the way staff are paid?
- Q124 What has caused union membership to fall?
- Q125 ?Is it true that associated trends include the collapse of the lifetime employment system, increasingly fluid labor markets, and changes in the way staff are paid?
- Q126 Are there problems with the labor unions them-selves?
- Q127 Do labor unions have a political affiliation?
- Q128 Are the unions doing anything about falling memberships?
- Q129 How many chairmen have there been since1948, when Keidanren was inaugurated? (a) 7 (b) 11 (c) 14 (d) 17
- Q130 What type of organization is Nippon Keidanren?
- Q131 Chairman Mitarai is said to be an exceptional reformer. How do you believe he might like to change Japan?
- Q132 Formerly, the relationship among industry, civil servants and ruling politicians was referred to as the iron triangle. Has the power of Nippon Keidanren, which represents industry, declined since then?
- Q133 Can overseas companies also make political donations?
- Q134 What other business organizations are there besides Nippon Keidanren?
- Q135 The initial public offering (IPO) was 1.55 million yen per share. What was the initial trading price when trading began? (a) 1.25 million yen (b) 1.95 million yen (c) 2.95 million yen
- Q136 What type of company is mixi?
- Q137 I Are many managers of IT companies young?
- Q138 Have IT businesses expanded in line with the growth of the Internet?
- Q139 The Internet retailer Rakuten Inc. is also famous, isn't it?
- Q140 Japan's unemployment rate (the percentage of those who are wholly unemployed) peaked between 2002 and 2003. What was the highest rate? (a) 4.5% (b) 5.5% (c) 6.5%
- Q141 In 1991, the Japanese economic bubble burst and the unemployment rate gradually increased. Nevertheless, it took a long time to peak, didn't it?
- Q142 The situation changed after the second half of the 1990s, didn't it?
- Q143 Did the rate of new graduate hires fall?
- Q144 Was there a major increase in the number of freeters (part-timers)?
- Q145 NEETs are also on the increase, aren't they?
- Q146 The employment structure has undergone change recently, hasn't it?
- Q147 In 1985, individuals employed in manufacturing accounted for 27.2% of all those employed in Japan (excluding people working in agriculture and the forestry industry). So what was the percentage in 2005? (a) 18.7% (b) 25.7% (c) 30.7%
- Q148 Japanese manufacturers are continuing to make inroads into foreign markets in Asia, the United States and Europe, aren't they?
- Q149 Did the rapid decline fuel concern that domestic industry was being hollowed out?
- Q150 Is there concern that there might be a decrease in the number of employers?