Japan Vs Us Economy Essay

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Over the past three years, government spending has amounted to 38.7 percent of the country’s output (GDP), and budget deficits have averaged 3.9 percent of GDP. The process for establishing a business is relatively streamlined, but bureaucracy is sometimes stifling.

A propensity for lifetime employment guarantees and seniority-based wages impedes the development of a dynamic and flexible labor market.

Accounting for these fluctuations through use of the Atlas method, Japan is estimated to have a GDP per capita of around $38,490.

The Japanese economy is forecast by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan.

Because of political decisions on local, prefectural, and national levels, Japan decided not to exploit its forest resources for economic gain.

Domestic sources only supplied between 25 and 30 percent of the nation's timber needs.The economic bubble came to an abrupt end as the Tokyo Stock Exchange crashed in 1990–92 and real estate prices peaked in 1991.Growth in Japan throughout the 1990s at 1.5% was slower than global growth, giving rise to the term Lost Decade.Security concerns include North Korea’s nuclear and missile threats and China’s claims of sovereignty in the East and South China Seas. It enforces contracts and provides secure protection of real and intellectual property.Levels of corruption are low, but close relationships among companies, politicians, and government agencies foster an inwardly cooperative business climate conducive to corruption.Japanese whaling, ostensibly for research purposes, has been sued as illegal under international law.Although many kinds of minerals were extracted throughout the country, most mineral resources had to be imported in the postwar era.The public wants deeper reforms to remedy Japan’s endemic economic problems but fears the upheaval that such measures would cause.The government’s “Abenomics” policy has made a dent in deflation, but demographic decline caused by a low birth rate and an aging, shrinking population poses a major long-term economic challenge.Local deposits of metal-bearing ores were difficult to process because they were low grade.The nation's large and varied forest resources, which covered 70 percent of the country in the late 1980s, were not utilized extensively.


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