JAPAN

JAPAN

Nippon-koku:

Land of the Rising SUN

Exports: $697 billion

• motor vehicles 13.6%
• semiconductors 6.2%
• iron and steel products 5.5%
• auto parts 4.6%
• plastic materials 3.5%
• power generating machinery 3.5%

Imports: $766.6 billion

• petroleum 15.5%
• liquid natural gas 5.7%
• clothing 3.9%
• semiconductors 3.5%
• coal 3.5%
• audio and visual apparatus 2.7%

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Demographics

Economy

Culture

Age and sex structure

More indicators of an aging society:

• 0-14 years: 13.2%(m 8,681,728/f 8,132,809)
• 15-24 years: 9.8%(m 6,429,429/f 5,890,991)
• 25-54 years: 38%(m 23,953,643/f 24,449,655)
• 55-64 years: 25.8%(m 8,413,872/f 8,400,953)
• 65 years and over: 24.8%(m 14,218,655/f18,531,653)

By 2050 people over the age of 65 will be over 40%

Miracle

• Is regarded to be 14000 years old.
• Written history of Japan starts in 300 BC
• Japanese culture has evolved primarily from its origins.
• It has been greatly influenced by neighboring countries such as China and Korea (written language, religion, architecture)
• In the later history Japan has had a big influence from the west (music, impressionism, sports, politics, etc)
• Is home of one of the most popular modern literature arts: Manga

Ethnic Groups

After the two great World Wars Japan preformed an economic miracle. The combination of Government investments, technological development, work ethics and conditions lead to:

• 10% economic growth in the 60's
• 5% economic growth in the 70's
• 4% economic growth in the 80's

These creative decades gave birth to some of Japan's giants, such as Toyota, etc.

Dependency

Japan's population of 127.1m is composed by:

• Japanese: 98.5%
• Korean: 0.5%
• Chinese: 0.4%
• Others (mostly Americans of Japanese origin):0.6%

The above indicate a significant homogeneity level

More than half of the population is not typically in the labor force and is thus being supported:

• Total dependency ratio: 61.6 %
• Youth dependency ratio: 21.1 %
• Elderly dependency ratio: 40.5 %
• Potential support ratio: 2.5 (2013)

Japan's labor force consists of some 65 million workers. The number is rapidly reducing

Urbanization

Japan is a highly urbanized country:

• Urban population: 91.3% of total population (2011)
• Rate of urbanization: 0.57% annual rate of change (2010-15 est.)
• Tokyo is the most populated city in the world, with approximately 37 million people

Japan's natural environment leads to these phenomena. 73% of the country is unfit for residence, agricultural or industrial activity.

Decline

Population

Economic figures

Literacy

However, growth slowed remarkably in the 90'S reaching 1.7% due to inefficient investment's and policies. Since 2008:

• Japan has fallen into recession 3 times
• The devastating earthquake and the Fukushima incident had a major impact on the economy
• The Government is now trying to implement reforms (increased of Taxes 10%, by 2015) and enter associations (TPP, 2013), in order to revitalize the economy

Although Japan is the 11th population in the world, it is constantly getting smaller and older:

• Population growth: -0.13%
• Birth rate: 8.07 births per 1000 people
• Death rate: 9.38 deaths per 1000 people
• Median age: 46.1 years
• Life expectancy at birth: 84.46 years (3rd in the world

It is worth mentioning that the leading cause of death for people under 30, is suicide. It has devastated the country for more than a decade. In 2009, 30000 committed suicide

Some basic economic indexes for 2013 show:

• GDP: $4.729 trillion (fifth in the world)

agriculture: 1.1%

industry: 25.6%

services: 73.2%

• GDP growth: 2%
• GDP per capita:$37,100
• Budget deficit: -8.2%

$1.739 trillion (Rev.)-$2.149 trillion (Ex.)

• Public Dept: 226.1% of GDP
• External Dept: $3.017 trillion
• Inflation: 0.2%
• Unemployment: 4.1%
• Distribution of family income - Gini index: 37.6%

Japan is a highly educated society. People over 15 years old that can read and write are:

• Total population: 99%
• Male: 99%
• Female: 99% (2002)

Life expectancy for school in Japan is 15 years:

• Elementary school: 6 years
• Middle school: 3 years
• Senior high school: 3 years
• Higher education: 3+ years

Religion

Imports/Exports

Japan's majore religions are:

• Shintoism: 83.9%
• Buddhism: 71.4%

There are also believers of:

• Christianity: 0.4%
• Other religions: 0.6%

A big proportion of the people believes both in Buddhism and Shintoism.

Hofstede Analysis

Power distance

Encouraging facts

E

Despite its deep economic problems, Japan:

• Is still the fourth largest economy in the World
• Has an enormous industrial potential (Automobile, etc.)
• Is one of the most technologically advanced countries in the World
• Is looking toward the future (Developed space programs)
• Is known to surpass far greater difficulties (2WW destruction, several natural disasters per century, etc)

Japan scores 54 on power distance:

• It is a hierarchical society, but not as much as other Asian cultures
• Japanese everyday language is rich in honorific expressions, which indicate acceptance of authority
• Japanese culture and education system considers to children be born equal
• Meritocracy is a core value in business and elseware

Individualism

Japan scores 46 on power distance:

• Is considered to be a collectivist society by westerners and individualistic society by easterners
• Japanese people are known for their loyalty and strong bonds with their companies
• Family bonds are less emotional than other neighboring countries, with similar impact on community bonds

Masculinity

Japan scores 95 on Masculinity:

• Japan is one of the most competitive cultures in the world
• Success and perfectionism is a dominant part of Japanese culture
• Japanese people are most motivated by antagonism. Thus, they are known to be workaholics
• Masculinity expression and phenomena are limited by collectivist trends

Uncertainty avoidance

Japan scores 92 on Uncertainty avoidance:

• Japanese people prefer security over risk
• They need all the solid information before making decisions
• Japanese companies spent a lot on feasibility research.
• Managers and employees act by the book, constantly seeking the highest predictability.
• People doe's not welcome changes

Pragmatism

Japan scores 88 on Pragmatism:

• Japanese people try to do their best and have no interest for the unknown
• Companies and employees focus on steady growth rather than opportunistic strategies
• Companies seek durability along with success
• Companies have a long-term orientation (own capital, invest in r&d)
• Companies are considered to serve stakeholders rather than shareholders

Indulgence

Japan scores 42 on Indulgence :

• Japan is a rather restraint culture
• Japanese people feel they cannot act differently from social norms
• Business negotiations are ritualistic
• Japan is a high context culture partly from this fact
• People focuses more on work than on leisure
• Japanese culture has significant pessimistic elements

Hofstede Comparison

Environment

• 73% of the country is forested and mountainous, including 4 UNESCO World Heritage locations.
• Japan is home of over 90000 species.
• Average temperatures vary from 5.1 °C (winter) to 25.2 °C (summer), with significant deviations among regions

Politics

Geography

• Japan's official system is constitutional monarchy (with an Emperor)
• Practically the parliament holds has all the power and consists of 2 bodies:

House of Representatives (480 seats)

House of Counsillors (242 seats)

• The conservative Liberal Democratic Party (LPD) of Japan, has been in power for almost 55 years
• Japan is a member of the G10 and G4

• Japan is located in the Easter border of China, Russia and Korea.
• It is an archipelago of 6,852 islands. The four largest islands are Honshu, Hokkaido, Kyushu and Shikoku.
• Is frequently devastated form earthquakes and tsunamis because of its tectonic position.
• Has no significant energy resources.