Overview of Japanese Imports and Exports
The nation of Japan has an ancient culture and strong national pride that has helped it to develop into one of the richest and most economically powerful nations in the world through Japanese imports. Japans exacting standards and production capacity have given the country an extremely good reputation as a global trading partner. It now has the third largest economy in the world and Japanese imports are coveted the world over because of their high quality and value.
Japan at a Glance
Japan has some of the most demanding academic standards in the world, so their workforce is almost entirely literate and highly skilled. Services make up two thirds of its GDP, with the rest from manufacturing and raw materials production. Japan lacks huge tracts of arable land and vast natural resources like other global leaders, but its manufacturing capacity is large, efficient and highly sophisticated, featuring automated factories and advanced production techniques. Japanese products and services are sought after and of high value.
Japanese Balance of Trade
Japan maintained a positive balance of trade for over a decade, meaning that they exported more products and services than they imported, but this changed in the past year (2011) due to the devastating earthquakes and the tsunami, and now they operate at a trade deficit of more than 400 billion Yen. The country’s main trade partners for exports are China, the US, South Korea, Taiwan and Hongkong, with total exports at around $765 billion. Imports from other countries such as China, the US, Australia, Saudi Arabia, and the United Arab Emirates exceed $636 billion.
The main Japanese imports (the commodities they import into their country from others) are raw materials, such as petroleum and mineral products, chemicals, wood, and textile products. These raw materials are usually utilized in their manufacturing processes. Other Japanese imports are heavy machinery and Western luxury merchandise. Japanese imports 15% of the world’s fish, and only cultivates about 13% of its land, so it also brings in large quantities of foodstuffs, especially beef, cereal grains, and soy.
Japan is known for its high-quality automobiles, electronics equipment, telecommunications equipment, semiconductors, optical fibers, machine tools, and business machines such as fax and copy machines. Japanese imports in other countries hold their value due to their high manufacturing quality, like in Japanese automobiles, such as Toyota, Nissan, and Honda. These car brands are acknowledged as some of the most reliable, safe, best performing and fuel-efficient vehicles, with usually very high resale values.
Making Money with Japanese Imports
Japanese imports in other countries sell very well, with foreign traders tending to lean toward items that have a continued, demonstrable demand, such as electronics and automobiles. These commodities tend to be reinvented every year or more, and popular products have high brand loyalty in their consumers. For example, some people in the US will only buy a Toyota car, or will only use a Canon copy machine. However, Japanese imports of processed foods and some manufactured products have fallen sharply in the past several months (earlier 2011) due to radiation concerns.
Despite recent temporary setbacks resulting from natural disasters, Japanese products will continue to be in demand. Regardless of the temporary concerns over radiation contamination from the nuclear disaster, the manufacturing plants will still continue producing high quality goods that will satisfy the world’s desire for superior Japanese imports.
If you enjoyed reading about an Overview of Japanese Imports and Exports then see our next article about Global Imports.
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