708-Chaudhari Technical Institute, Gandhinagar - Gujarat ...

708-Chaudhari Technical Institute, Gandhinagar - Gujarat ... 708-Chaudhari Technical Institute, Gandhinagar - Gujarat ...

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Overview of Industry, Trade & Commerce 1. Overview of Industry Trade Commerce Today, despite an overall stagnation on the economy for nearly two decades, Japan’s industries are still among the most highly advanced and innovative in the world. Japanese manufacturing products, particularly in electronics and automobiles, are the world leaders in both production and technological advancements in their respective fields. In 2010, Industry was responsible for 23 percent of Japan's GDP. Major industries are in Japan include motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, and processed foods. Japan’s automobile industry produces the second largest amount of vehicles in the world behind China. However, Japanese automobile companies remain among the most valuable and technologically advanced in the world. Japan is home to six of the top twenty largest vehicle manufacturers in the world – Toyota (1st), Renault-Nissan (4th), Honda (8th), Suzuki (10th), Mazda (14th), Mitsubishi (16th). The automobile industry also managed to register a massive 10.5 percent growth in 2009, in spite of the global financial crisis. Japan is also the world’s largest electronics manufacturer with prominent companies such as Sony, Casio, Mitsubishi Electric, Panasonic, Canon, Fujitsu, Nikon, Yamaha etc. Japanese electronic products are renowned for their innovation and quality. Backed by its high-tech industries and companies, Japan had the 8th highest industrial production growth rate in the world for 2010 at 15.5 percent. Simultaneously, Japan’s industrial production growth rate was the highest among the G20 nations. Despite the historical significance of Japanese manufacturing, Services are the dominant component of the economy – contributing to 75.9 percent of the GDP in 2010. Major services in Japan include banking, insurance, retailing, transportation and telecommunications. 64

The Tokyo Stock Exchange is the third largest stock exchange in the world by market capitalisation – with a total market capitalization of US$3.8 trillion as of Dec 2010. Japan Post is also the world’s largest postal savings system, and quite possibly the world’s largest holder of personal savings – at present it holds about US$2.1 trillion of household assets in its savings account and US$1.2 trillion of household assets in its life insurance services. Agriculture’s contribution to Japan’s economy is fairly small when compared to Industry and Services. In 2010, Agriculture made up only 1.1 percent of the nation’s GDP. Although its contribution appears minute, agriculture is still a highly important component of Japan’s economy and society. Japan’s agricultural economy is highly subsidized and protected. Only 15 percent of Japanese land is suitable for agriculture, though any available land is highly cultivated. As such, Japan has one of the highest per hectare crops yields in the world. Though it has a small agriculture sector, Japan is selfsufficient in the production of rice and fish, but relies heavily on food imports such as wheat, corn, sorghum and soybeans from the US. The 2011 earthquake and tsunami were catastrophic for many of Japan’s industries. Services contracted by 6 percent since the disaster – with dampened consumer confidence and interruptions to the economy to blame. The five major industries that are expected to be the most affected by the crisis are the natural gas industry, the automobile industry, the semiconductor industry, the oil industry and the tourism industry. (1) 65

Overview of Industry, Trade & Commerce<br />

1. Overview of Industry Trade Commerce<br />

Today, despite an overall stagnation on the economy for nearly two decades,<br />

Japan’s industries are still among the most highly advanced and innovative in<br />

the world. Japanese manufacturing products, particularly in electronics and<br />

automobiles, are the world leaders in both production and technological<br />

advancements in their respective fields.<br />

In 2010, Industry was responsible for 23 percent of Japan's GDP. Major<br />

industries are in Japan include motor vehicles, electronic equipment, machine<br />

tools, steel and nonferrous metals, ships, chemicals, textiles, and processed<br />

foods.<br />

Japan’s automobile industry produces the second largest amount of vehicles<br />

in the world behind China. However, Japanese automobile companies remain<br />

among the most valuable and technologically advanced in the world. Japan is<br />

home to six of the top twenty largest vehicle manufacturers in the world –<br />

Toyota (1st), Renault-Nissan (4th), Honda (8th), Suzuki (10th), Mazda (14th),<br />

Mitsubishi (16th). The automobile industry also managed to register a<br />

massive 10.5 percent growth in 2009, in spite of the global financial crisis.<br />

Japan is also the world’s largest electronics manufacturer with prominent<br />

companies such as Sony, Casio, Mitsubishi Electric, Panasonic, Canon,<br />

Fujitsu, Nikon, Yamaha etc. Japanese electronic products are renowned for<br />

their innovation and quality. Backed by its high-tech industries and<br />

companies, Japan had the 8th highest industrial production growth rate in the<br />

world for 2010 at 15.5 percent. Simultaneously, Japan’s industrial production<br />

growth rate was the highest among the G20 nations.<br />

Despite the historical significance of Japanese manufacturing, Services are<br />

the dominant component of the economy – contributing to 75.9 percent of the<br />

GDP in 2010. Major services in Japan include banking, insurance, retailing,<br />

transportation and telecommunications.<br />

64

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