Largest Economies in 2017 (Japan is second largest developed economy after…
Largest Economies in 2017
Balance of Trade
US dominance waning why?
emerging economies growing faster
Trumps hostile tariffs with China(second biggest economy)
US rely to heavy on China
e.g Apple iPhone s could only be produced at such a price in China due to low labor costs
China import aircraft, fuel and pharmaceuticals should they pull out it would be detrimental to US economy
How did China rise to power?
Government owned companies controlling their industries
Foreign MNCs must open fatories in China to sell to Chinese population.
Bank in China controls Yuan to dollar exchange
rates favouring Chinese economi
due to new jobs and growth
leads to better standard of living and education...
only 3.3% below poverty line
China leads now in E-commerce, AI and cyber security
companies such as Huawei, Xiaomi and Lenovo are beginning to challenge Apple and Microsoft
The Made in China PLAN 2025
will catapult the production of clean energy tech,electric cars and cut outdated fuels such as coal and steel
Japan is second largest developed economy after the US.
Dec(2012)-Sept(2017) largest growth since post WW2
which stimulated the economy
Abenomics is split in three:
The Govt inc. or decreasing taxes in order to stimulate growth
Radical monetary Policy
to increase the value of the Yen through the rising of real interest rates.
this involved huge reform cutting corporate tax rates, liberalizing the agricultural and labor conditions aswell as huge deregulation taking place
Tests show the biggest risks to Japan is the appreciation of the yen, downturn of Chinese market and military clashes
How does a labor force of 65 million compete with heavyweights such as the US and China ?
The Car Industry
Japan dominates the car industry with global giants Toyota, Suzuki, Mitsubishi and Lexus
Japanese companies use different methods developing a strategy
This production strategy reduces waste and errors in production maximizing profits
This was achieved through low cost and well engineered vehicles
Specialization in robotics and IT allow Japan to trade for raw material for the country benefiting the economy hugely
IT expected to grow from 9 trillion yen in 2016 to 16.4 in 2019
Whilst superpowers such as the Us rely on oil to power industry Japan have looked to the future investing in green fuels
this has cut costs and will prove much cheaper in the long run