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TAB LE O F C O NT E N T S

I II III IV

General Facts History Monarchy Political Executive Branch Legislative Branch Judicial Branch Political Party Economy Economic Indicators Key Points Culture Yakuza Zaibatsu Keiretsu Japan Exports Trade Policies Process Trade Philippine-Trade Relation Filipinos in Japan Occupy Tokyo

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3 4 8 9 9 10 10 12 12 13 14 14 15 15 16 18 18 21 21 21

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VI

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I. GENERAL
In Japanese, the country is called Nihon or Nippon. The two Chinese characters may be translate as "origin of the sun" or "land of the rising sun". The name Japan is believed to have come from European pronunciation attempts of Chinese words for "Japan".

Area

369,700 square kilometers Yen ( = 100 sen) Four seasons Winter, spring, summer, autumn Located (at its nearest point) 150km east of the Korean peninsula and about 1,500 km northeast of the Chinese mainland, Japan is situated in the northern Pacific Ocean with the Sea of Japan to its east. Shintoism 83.9%, Buddhism, Christianity, among others Japanese 51 sounds and 3 types of character Hiragana sound particles Katakana - foreign words Kanji - Chinese characters Tokyo

Currency Climate Location

Religions Language

Capital

Population ( July 2011 est) 127, 368,088 0-14 years : 13.1% (male 8,521,571/ female 8,076,173) 15-64 years: 64% ( male 40,815,840 / female 40,128,235) 65 years and over: 22.9% (male 12,275,829/ female 16,658,016) 10, u Urban population is 67% of the total. Among the populous cities are Tokyo 36.507 million; Osaka-Kobe 11.325 million; Nagoya 3.257 million; Fukuoka-Kitakyushu 2.809 million; and Sapporo 2.673 million.

II. HISTORY
During the Jomon period, which began around 10,000 BC, the inhabitants of Japan lived by fishing, hunting, and gathering. The period is named after the cord-markings (jomon) on the pottery they produced. In the Yayoi period, beginning around 300 BC, rice cultivation was introduced from the Korean Peninsula. An account of Japan in a Chinese historical document of the third century AD describes a queen named Himiko ruling over a country called Yamatai. Kofun Period (ca. AD 300-710) In the fourth century, ancestors of the present imperial family established Japan's first unified state under what is known as the Yamato court. During this period, manufactured articles, weapons, and agricultural tools were introduced from China and Korea. The period is named after the huge mounded tombs (kofun) that were built for the political elite. These tombs were often surrounded with clay cylinders and figurines called haniwa. Nara Period (710-794) A centralized government, with its capital in what is now the city of Nara, was established under a Chinese-style system of law codes known as the Ritsuryo system. Buddhism became the national religion, and Buddhist art and architecture flourished. Provincial temples called kokubunji were set up throughout Japan. It was during this period that the Great Buddha at the Todaiji temple in Nara was built. Histories of Japan, such as Kojiki and Nihon shoki were compiled, as was the celebrated collection of poetry called Man'yoshu.

Heian Period (794-1185) After the capital moved to what is now Kyoto, certain noble families,especially the Fujiwara family, gained control of the government, ruling on behalf of the emperor. The Chinese-style culture that had dominated the Nara period was gradually replaced by a more indigenous style of culture closer to the lives of the people and their natural surroundings. The palaces of the emperor and the residences of the noble families incorporated beautiful gardens, with buildings in the shinden-zukuri style of architecture. Literary masterpieces such as Murasaki Shikibu's The Tale of Genji and Sei Shonagon's Pillow Book were written during this period. Kamakura Period (1185-1333) The Taira family, a warrior family that had come to dominate the imperial court in the late Heian period, was overthrown by the Minamoto family. Minamoto no Yoritomo was given the title of shogun by the court, and he set up a military-style government at Kamakura - the Kamakura Shogunate - ushering in a period of de facto rule by members of the warrior class. In the arts, a vigorous, realistic style emerged that was in keeping with the warrior spirit. The statues of fierce guardian deities by Unkei and other sculptors at the Southern Great Gate of Todaiji Temple are examples of this powerful, realistic style. In literature, this period is noted for military tales such as the Tale of the Heike, which celebrated the exploits of the warriors. Muromachi Period (1333-1568) The beginning of this period was dominated by a political standoff between Emperor Go-Daigo, who had briefly restored control of the government to the imperial court, and his former supporter Ashikaga Takauji, who had overthrown the Kamakura Shogunate but had then gone on to establish the Muromachi Shogunate. More plebeian forms of culture began to emerge as the merchant class and the peasants managed to improve their circumstances. In the arts this was a period of Chinese-style ink painting, and in theater Noh drama and kyogen came to the fore. This was also the period in which the pursuits of tea ceremony and flower arrangement were born. In architecture, an important development was the shoin-zukuri style, with elegant tatami-matted rooms, featuring an alcove where paintings were hung.

Azuchi-Momoyama Period (1568-1600) The nation was reunified by Oda Nobunaga and Toyotomi Hideyoshi (foremost among the Sengoku warlords) who respectively ruled it briefly. In the arts, this was a period of increased contact with Europeans, who had begun to visit Japan earlier in the century. In place of the Buddhist influence of earlier periods, a lavishly ornate decorative style was developed at the hands of the warlords and the emerging merchant classes in the towns. This new style reached its height in Nobunaga's Azuchi Castle and Hideyoshi's Momoyama and Osaka castles. At this time the tea master Sen no Rikyu developed the tea ceremony into an esthetic

discipline that is known as the Way of Tea. Edo Period (1600-1868) Tokugawa Ieyasu, who defeated other vassals of the deceased Toyotomi Hideyoshi at the Battle of Sekigahara and thereby gained control of Japan, established the Tokugawa Shogunate in Edo (now Tokyo). The Tokugawa shoguns ruled Japan for over 260 years, and for some 200 of these years the country was virtually shut off from foreign contact by the shogunate's policy of national seclusion. From the end of the 17th century through the beginning of the 18th century, a colorful, down-to-earth new culture developed among the townsmen of the older cities of Kyoto and Osaka. Ihara Saikaku composed his ukiyo-zoshi (books of the "floating world"), Chikamatsu Monzaemon portrayed tragic relationships between men and women in his puppet plays, and Matsuo Basho raised the comic haiku verse form to the level of a literary art. By the Bunka and Bunsei eras, at the beginning of the 19th century, this new merchant-class form of culture was also flourishing in the shogunal capital of Edo. The kabuki drama was in its heyday. The printing of books had become an industry. The art of the woodblock print (ukiyoe) was born, with Sharaku producing his portraits of actors, Utamaro his pictures of beautiful women, and Hokusai and Hiroshige their landscapes.

Meiji Period (1868-1912) The Meiji Restoration, by which political authority was restored from the shogunate to the imperial court, ushered in a period of far-reaching reform. The policy of national seclusion was rescinded, and the culture and civilization of the West began to pervade every aspect of Japanese life. Japan's victories in the Sino-Japanese and RussoJapanese wars enabled it to assume the stance of a modern, imperialistic world power. Modern Japanese literature was born with the publication of Futabatei Shimei's novel Ukigumo (Drifting Clouds), the first literary work to be written in the modern colloquial language. A Japanese version of romanticism soon appeared, with writers making their first attempts at free, natural expression of people's true feelings. Taisho Period (1912-1926) The educated urban middle classes avidly read the latest translations of Western books and provided the audience for new experiments in literature, drama, music, and painting. The significant development in literature was the emergence of the Shirakaba school. Members of the group including Mushanokoji Saneatsu and Shiga Naoya were united by their upper- class background as well as by their basic humanism. In the Western-style of painting, Yasui Sotaro and Umehara Ryuzaburo returned from Paris to promote the styles of Cezanne and Renoir. Japanese-style painters such as Yokoyama Taikan and Hishida Shunso were also affected by European styles, although on a limited scale. Showa Period (1926-1989) Heisei Period (1989 to present) The financial crisis of 1927, which occurred in the aftermath of the Great Kanto Earthquake of 1923 that devastated the Tokyo area, eventually led to a long period of economic depression. In these circumstances, the power of the military increased, and it eventually gained control of the government. The Manchurian Incident of 1931 launched a series of events that culminated in Japan's entry into World War II. This war ended in Japan's defeat, with Emperor Showa accepting the terms of the Potsdam Declaration. Japan rose from the rubble of defeat, going on to achieve an almost miraculous economic recovery, which has allowed it to take its place among the world's leading democratic powers.
Source : http://web-japan.org/museum/historyofjp/histjp.html

III. MONARCHY
The Yamato Dynasty is the current Imperial House of Japan. It ranks as the oldest continuous Monarchy in existence in the world today. Constitutionally, the Emperor and the Imperial Family hold no official role within Japanese society, and is only being considered as the symbol of the State and unity of the people by the current constitution of Japan. Through the year, members of the Japanese Imperial Family carry out engagements across Japan, and act as representatives for the Monarchy and Japan abroad. The Imperial Monarchy can trace its roots to 660 BC from the reign of Emperor Jimmu. Since its founding in 660 BC, Japan had 125 Emperors. ( Appendix A) Before and during the Second World War, the Japanese Emperor enjoyed the power of an Absolute Monarch, along with high-ranking generals. After the war, the Allies proposed several changes to the inner workings of Japan, and a new constitution was approved. The new document limited the power of the Emperor to a completely ceremonial role. The current Emperor, His Imperial Majesty Emperor Akihito came to the throne in January 1989 upon the death of his father Emperor Hirohito the Emperor was enthroned a year later. The Imperial House of Japan also referred to as the Imperial Family, comprises those members of the extended family of the reigning Emperor of Japan who undertake official and public duties. Other members of the imperial family perform ceremonial and social duties, but have no role in the affairs of government. The duties as an emperor are passed down the line to children and their children's children and so on.The Imperial Family supports the Emperor and Empress in their public duties and are often seen promoting charitable causes in Japan. The Imperial Family presently composed of 22 members of the Imperial Family. ( See Appendix B) In Japan, the succession to the throne is governed by laws which prohibit women altogeter from succeeding to the throne. Currently, no women can ascend to the throne. In an effort to control the size of the imperial family, laws stipulate that only legitimate male descendants can be dynasts; as in hold style and titles in the Japanese Monarchy, this meant female members of the family who marry lose their status as members of the imperial family. IMPERIAL STANDARD SEAL

Emperor

Empress and the Empress Dowager

Regent

Crown Prince

Crown Princess

Member of the Imperial House

IV. POLITICAL SYSTEM A. THE EXECUTIVE BRANCH Japan is a constitutional monarchy (like Britain) where the power of the Emperor is very limited. He is defined by the constitution ( Appendix C) as "the symbol of the state and of the unity of the people". This is a a big change to the situation prior to Japan's WW2 defeat by the Americans when the Emperor was regarded as divine. The Prime Minister is chosen for a term of four years, although the political turbulence of the Japanese system is such that he rarely serves a full term. He must win a majority in the Diet in a single signed ballot. If the two houses cannot reach agreement, the decision of the House of Representatives always prevails. The official residence of the Prime Minister is called the Kantei (a new building was opened in 2002). Yoshihko Noda of the Democratic Party of Japan (DPJ) currently serves as the Prime Minister. He is Japan's seventh Prime Minister in six years. The Prime Minister choses his Cabinet which is limited by a constitutional amendment of 2001 to an additional 14 regular members with the possibility of three special members. At least half of the Cabinet must be members of the Diet. B. THE LEGISLATIVE BRANCH The Japanese legislature is called the Kokkai or Diet and is a bicameral structure. Generally decisions are made on a majority vote, but a two-thirds majority is required in special cases. The lower house in the Japanese political system is the Shugi-in or House of Representatives. It has 480 seats and members serve a four-year term, although only once since the war has a full term been served (the average is two and a half years). Of the 480 seats, 300 are elected from single-member constituencies and the other 180 are elected from 11 multi-member constituencies by a system of proportional representation. The House of Representatives has preeminence over the House of Councillors and can pass a vote of no confidence in the Cabinet as a whole. The House of Representatives can be dissolved by the Prime Minister (like the British House of Commons) or by a Cabinet no confidence vote. The upper house in the Japanese political system is the Sangi-in or House of Councilors. It has 242 seats and members serve a six-year term. Only half of its membership is re-elected at each election every three years, using a parallel voting system. Of the 121 members subject to election each time, 73 are elected from the 47 prefectural districts by the single transferable vote method and 48 are elected from a nationwide list by proportional representation. This element of proportional representation was introduced in 1982 in an effort to combat the effect of huge sums of money being spent on election campaigns. The House of Councilors cannot be dissolved. If the two houses disagree on matters of the budget, treaties, or designation of the Prime Minister, the House of Representatives can insist on its decision. In all other decisions (such as the passage of a Bill), the House of Representatives can override a vote of the House of Councilors only by a two-thirds majority of members present.

C. THE JUDICIAL BRANCH The Supreme Court is the highest court in the land. The Chief Justice is appointed by the Emperor following selection by the Cabinet. Fourteen other judges are selected and appointed by the Cabinet. Every 10 years, a justice's tenure has to be confirmed by referendum. In practice, the justices are almost always reselected and are allowed to serve until the age of 70. Historically the Supreme Court has played a low-key role, avoiding controversy and maintaining the status quo. As a result, individual members of the Court are virtually unknown to the general public. Since the late 19th century, the Japanese judicial system has been largely based on European civil law, notably that of France and Germany. With post-World War II modifications, this legal code remains in effect in present-day Japan.
SOURCE : http://www.rogerdarlington.me.uk/Japanesepoliticalsystem.html

Elections The minimum voting age is 20 years. Women received the right to vote in the new constitution. Elections for the House of Representatives are carried out every four years, and half of the House of Councilors is elected every three years. Beside the national elections there are prefectural and municipal elections. D. POLITICAL PARTIES Major Party 1.Democratic Party of Japan (DPJ) Minshu-t The DPJ is Japan's largest party. It was formed in the late 1990s as a result of the merger of several anti-LDP parties. Its membership covers a broad spectrum of political beliefs, but it is generally perceived as a center-left party. At present they have 251 representatives and 92 councilors.The original Minshuto was formed in 1947 and formed part of the ruling coalition with the JSP and the People's Cooperative Party later that year. Party leader and Prime Minister Ashida Hitoshi resigned after he was implicated in a bribery scandal which brought down the government. The party was dissolved in 1950. The current version was formed as a reform party by Kan Naoto, Hatoyama Yukio and his brother Kunio (who later moved to the LDP) in 1996. Ozawa Ichiro resigned as party leader in the spring of 2009 following a financial scandal involving a private secretary and Hatoyama was elected as his successor. He led the party to a resounding victory in a national election held in early September 2009. This victory marked the first real shift in power in Japanese politics in more than 50 years. 2. Liberal Democratic Party (LDP) Jiy Minshu-t The LDP is Japan's second largest political party. It is a conservative party and is made up of various conservative and centrist factions. Before 2009, the LDP had been in power almost continuously since 1955, when it was formed as a merger of early postwar Japan's two conservative parties, the Liberal Party of Japan and the Democrat Party of Japan. The LDP was born when the Liberal Party merged with the newlycreated Japan Democratic Party in 1955 and, under Yoshida Shigeru, became the dominant political force in postwar Japan. Current leader Aso Taro is typical of the incestuous nature of political power in Japan. He is related to the Imperial family, is the 10

grandson of a former prime minister, and the son-in-law of another. His image as being out of touch with the people was a factor in the LDP finally being ousted from power. Minority Party 1. New Komeito (New Clean Government Party) Komeito was formed in 1964 as the political wing of Soka Gakkai, an organization affiliated with Nichiren Buddhism. The party lacked support due to its strong connection with religion until it officially severed the link in the 1970's. Komeito went on to become a mainstay of centrist politics. The party merged with the New Peace Party in 1998. While established to promote international peace, support social welfare and eliminate political corruption, recent years have seen the party move closer to the more conservative policies of the LDP. This helped the party enter government in a coalition with the LDP. The current president is Yamaguchi Natsuo. 2. Nihon Kyosanto (Japan Communist Party JCP) Formed in 1922, the JCP was mostly a secretive and underground movement until it was legalized after the Second World War. Some successes in the immediate postwar period were undone soon after the outbreak of the Korean War in 1950. The Red Purge drove JCP members to acts of terrorism which led to a loss of public support. Under the leadership of Nosaka Sanzo and Miyamoto Kenji, the party moderated its policies and began to regain support. With a basic policy of a peaceful transition to Socialism, it has adopted an independent and nationalist position. It calls for the return of the Russian-held Northern Territories but has eased its opposition to the Self Defense Forces and the US. Currently led by Shii Kazuo. 3.Shakai Minshuto (Social Democratic Party of Japan - SDPJ) Although the first Japan Socialist Party was formed in 1906, it soon broke into factions. It wasn't until 1945 that the current party was formed and it was the main oppostion force of the postwar period. The party had a brief 15 months in power in 1947-8 and had to wait almost 50 years for its next chance. The early 1950's saw the JSP reach its peak of power but increasingly left-wing elements caused internal feuding that continued for almost 30 years. A right-wing faction broke away to form the Democratic Socialist Party in 1960. The DSP and Komeito drained much of the JSP's support. Under the leadership of the charismatic former Speaker of the House Doi Takako, the party had some short-lived success in the late 80's and early 90's. The party changed its name to the SDPJ in 1991. The party enjoyed a short period of government participation in 1993-4 and formed a coalition government in 1994-6. But after the electoral defeat of 1996 it lost many of its members to the DPJ. Doi handed over the chairmanship to another woman, Fukushima Mizuho, in 2003. Sources : http://www.japan-zone.com/omnibus/political_party.shtml

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V. ECONOMY
A. ECONOMIC INDICATORS GDP (purchasing power parity): GDP (official exchange rate): GDP - real growth rate: $ 5.87 trillion (2011 est) $4.31 trillion (2010 est.) $4.146 trillion (2009 est.) $4.424 trillion (2008 est.) $5.459 trillion (2010 est.) 3.9% (2010 est.) -6.3% (2009 est.) -1.2% (2008 est.) $34,000 (2010 est.) $32,600 (2009 est.) $34,800 (2008 est.) agriculture: 1.4% industry: 24.9% services: 73.8% (2010 est.) 62.97 million (2010 est.) -0.7% (2010 est.) -1.3% (2009 est.) Rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; fish Among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods 16.6% $788 billion (2011 est) $730.1 billion (2010 est.) $545.3 billion (2009 est.) Transport equipment, motor vehicles, semiconductors, electrical machinery, chemicals China 19.4%, US 15.7%, South Korea 8.1%, Hong Kong 5.5%, Thailand 4.4% (2010)

GDP - per capita (PPP):

GDP - composition by sector: (2010) Labor force: Inflation rate (Consumer prices 2010 est.) Agriculture products Industries

Industrial production growth rate (2010 est.) Exports Exports commodities

Exports partners

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Imports Imports commodities Imports partners

$808.4 bilion (2011 est) $639.1 billion (2010 est.) $501.6 billion (2009 est.) Machinery and equipment, fuels, foodstuffs, chemicals, textiles, raw materials China 22.1%, US 9.9%, Australia 6.5%, Saudi Arabia 5.2%, UAE 4.2%, South Korea 4.1%, Indonesia 4.1% (2010)

B. KEY POINTS

Remains the worlds third largest economy, after the US and China.

Real GDP is expected to grow by 1.1% in 2012. The sluggish performance is the result of a strong yen, Europe's debt woes and weaknesses in China. The economy did better than expected when real GDP grew at an annualised rate of 4,7% in the first quarter of 2012 as it recovered from last year's earthquake and tsunami. For the first time in at least 20 years, economists expect domestic demand rather than exports to be the driving force in the medium term. Tokyo plans several measures in an effort to reduce public debt over the next 10 years. For example, the corporate tax rate will be cut further, beyond the planned reduction to 35% in 2015 to improve incentives to invest. In addition, the personal income tax base will be broadened to raise revenue and improve work incentives. Finally, the pension retirement age will be raised to 67 years.

Public investment has been growing, reflecting reconstruction spending on housing, roads and other building work following the disaster in northeast Japan. Residential investment is also rising as a result of victims' demand for housing.

Deflation persisted for three straight years with prices falling by 0.3% in 2011. However, prices are forecast to rise by 0.3% in 2012. The central bank has pushed interest rates down to a three-year low. It has also introduced new provisions to encourage bank lending to innovative firms. The central bank's target for inflation is 1% per year.

C. CULTURE Japanese companies are known for management methods such as "The Toyota Way". Kaizen (Japanese for "improvement") is a Japanese philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace, Kaizen activities continually improve all functions of a business, from manufacturing to management and from the CEO to the assembly line workers. By improving standardized activities and processes, Kaizen aims to eliminate waste Kaizen was first implemented in several Japanese businesses during the country's recovery after Wor.ld War II, including Toyota, and has since spread to businesses throughout the world.[38] Ironically, Japanese workers work amongst the most hours per day even though kaizen is supposed to improve all aspects of life. ( Appendix D) 13

Karshi, which can be translated quite literally from Japanese as "death from overwork", is occupational sudden death. The major medical causes of karshi deaths are heart attack and stroke due to stress. Sarakin is a Japanese term for moneylender, or loan shark. It is a contraction of the Japanese words for salaryman and cash. Around 14 million people, or 10% of the Japanese population, have borrowed from a sarakin. In total, there are about 10,000 firms (down from 30,000 a decade ago); however, the top seven firms make up 70% of the market. The value of outstanding loans totals $100 billion. The biggest sarakin are publicly traded and often allied with big banks.] Skaiya (sometimes also translated as corporate bouncers, meeting-men, or corporate blackmailers) are a form of specialized racketeer unique to Japan, and often associated with the yakuza that extort money from or blackmail companies by threatening to publicly humiliate companies and their management, usually in their annual meeting ( skai?).

Yakuza
Current yakuza members fall under three general categories: tekiya (street peddlers), bakuto (gamblers), and gurentai (hoodlums). The peddlers and gamblers trace their roots back to the 18th century while the hoodlums came into existence after World War II when the demand for black market goods created a booming industry. Traditionally the tekiya, medieval Japan's version of snake-oil salesmen, worked the fairs and markets while the bakuto worked the towns and highways. The gurentai, by contrast, modeled themselves on American gangsters of the Al Capone era, using threats and extortion to achieve their ends. After World War II, in the governmental power void caused by the Occupation, the gurentai prospered, and their ranks swelled. They also brought organized crime in Japan to a new level of violence, replacing the traditional sword with modern firearms, even though guns were now officially outlawed in the country as a result of the surrender. ( Appendix ) Yakuza at Fukishima Investigators have been probing possible yakuza links to TEPCO and the nuclear industry relying on the organized crime for manpower few months after the March 11 earthquake. The authorities arrested the high ranking yakuza- Makoto Owada, of the Sumiyoshi-kai group for his alleged role in illegal dispatching of workers to TEPCOs Fukushima Daichi Nuclear Plant. Owada admitted that he had dispatched workers including his soldiers. He claimed that his people stayed to stop more disaster when everyone else from Fukushima was running away. The yakuza provided the labor no sane person would consider working under a very hazardous condition specially during the meltdown. This was verified from Suzukis report of an undercover agent saying that they were yakuza heads and soldiers during the most dangerous days of the radiation leaks ( Appendix D / E)

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D. ZAIBATSU / KEIRETSU Zaibatsu (Japanese: wealthy clique), generally refers to the large preWWII clusterings of Japanese enterprises, which controlled diverse business sectors in the Japanese economy. They were typically controlled by a singular holding company structure and owned by families and/or clans of wealthy Japanese. The zaibatsu exercised control via parent companies, which directed subsidiaries that enjoyed oligopolistic positions in the preWWII Japanese market. ( Appendix G) The allies dismantled the zaibatsu in the late 1940s, but the companies formed from the dismantling of the zaibatsu were reintegrated. The dispersed corporations were reinterlinked through share purchases to form horizontally integrated alliances across many industries Industrial groups with no connection to former Zaibatsu were also formed around banks. These groups included those that surrounded the former Daiichi Kangyo Bank, Sanwa Bank, and Fuji Bank. Companies within these groups also tended to cooperate on the business front and have been an important factor in Japans rapid economic development since the war. Four of the top Zaibatsu companies are : Mitsui, Mitsubishi, Yasuda, Sumimoto ( Appendix H) Despite the absence of an actualized sweeping change to the existence of large industrial conglomerates in Japan, the zaibatsu's previous vertically integrated previous chain of command, ending with a single family, has now widely been displaced by the horizontal relationships of association and coordination characteristic of keiretsu. Keiretsu Keiretsu is a type of business group in Japan where the members of the group are tied by interlocking business relation and intra keiretsu share-holding, what it means that keiretsu has stable shareholding arrangements. The major keiretsu is centered by financial institutions which are backing up the financial of its members. Keiretsu members within group share their ownership by cross-shareholding system rather than shareholder. These shareholders are characterized by business reasons and capital gains rather than short term profit seeking. Shareholders within the network are often more patient and seek long term benefit and willing to accept lower return of investment, this way the company has less pressure to seek short term profit in order to return dividend. Types of Keiretsu There are two type of keiretsu, first is horizontal keiretsu, and second is, vertical keiretsu. these two type of keiretsu is different one another, in vertical a lead firm will organize the network which consist of suppliers and distributors, and members of horizontal keiretsu are able to form their own vertical keiretsu to assure their supply and distribution system to support their business activities. Horizontal keiretsu (yoko / financial keiretsu): A group of large companies which have a common ties with powerful bank, they might come from unrelated business however they united by cross-shareholding within the network. The features of this group are, cross-shareholding, loans from groups bank, and trading of goods and services within network. Not tied, sometimes each company has their own vertical keiretsu. Vertical 15

keiretsu (tate / or you may call it supplier and distributors keiretsu): these are agglomerations of large number of small and medium sized companies under the umbrella of a major company. It layered by group of firms which consists large number of suppliers and distributors. They avoid reliance on a single source of supplier and follow a multi-supplier policy. How this type of cooperation affect level of competitiveness of Japanese firms? Because of the relationship are very different, I will divided the level of competitiveness on both keiretsu and horizontal keiretsu, however, both of the mentioned concepts are great help to businesses and the economy as a whole.
Source : http://www.investopedia.com/articles/economics/09/japanese-keiretsu

E. JAPAN EXPORTS Japan exports were worth 5046 Billion JPY in August of 2012 but dropped l 8.1% from last year due to the decrease in exports to the European Union , China and US. Exports have been the main engine of Japan's economic growth in the past six years. Japans major exports are: consumer electronics, automobiles, semiconductors, optical fibers, optoelectronics, optical media, facsimile and copy machines. Main export partners are United States, China, European Union, South Korea and Taiwan. Manufacturing and exports have long been the lifeblood of the Japanese economy. Here are the ten biggest Japanese exporters. 10. Mitsui & Co. Mitsui & Co. is one of Japans sogo shosha,(general trading companies). These companies are involved in all sorts of business activities, from sales and services, to heavy manufacturing. Mitsui & Co. isnt the biggest of the sogo shosha overall, but it is one of those more heavily involved in manufacturing and exports. Theyre best known overseas for their involvement in the export of steel products and materials. 9. Mitsubishi Mitsubishi has the greatest overseas name recognition of the sogo shosha, largely thanks to its efforts in the auto and electronics industries. Although its gradually wound down its auto sales business overseas, Mitsubishi remains a big exporter, most notably in the areas chemicals and heavy machinery. 8. Fujitsu Though now focused largely on IT services and consulting, Fujitsu is still a major manufacturer of products in a few different areas. Fujitsus PC sales business has declined over the years, but their notebook sales remain strong, and they continue to produce things like servers, storage systems, monitors, and computer parts and accessories. 7. Toshiba Toshiba is one of Japans largest and most historic companies, with roots in the late 19th century. Today the company is a major player in several different sectors. Best known among consumers for its TVs and laptops, Toshiba is also an exporter of semiconductors, printer parts, and power generation technology.

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6. Sony One of the worlds largest entertainment conglomerates, Sony remains one of Japans biggest exporters of products and parts, primarily of electronics. Sony still does about half of its production in Japan, most of which is then exported overseas. Among the Sony products entirely or partially made in Japan today are TVs, cameras, and PCs and computer parts such as semiconductors and batteries. 5. Panasonic Although second to Sony in terms of worldwide brand name recognition, Panasonic is actually Japans largest electronics company( which is where Panasonic, then using the National brand name, got its start) and semiconductors. In addition to its eponymous television, power tool, camera, telephone and appliance manufacturing operations, Panasonic also owns the Sanyo and Technics brands. 4. Nissan The third largest Japanese car manufacturer, Nissan has possibly the most tumultuous history. The company looked to be on its way to extinction by the 1990s and was forced to enter into a partnership with Renault in 1999. Its subsequent turn around under CEO Carlos Ghosn is the stuff of legends. These days Nissan is doing pretty well, although sales of its Infiniti luxury line continues to lag behind those of Lexus and Acura. Nissan also produces marine equipment in partnership with Tohatsu. 3. Hitachi Hitachi is perhaps best known to consumers as a relatively minor player in home electronics, so its probably a surprise to see it so high on the list. Consumer elec tronics are only a small part of Hitachis overall operations, though. In addition to components for electronics, Hitachi also exports medical equipment, power systems, heavy machinery, auto parts, rail products and vehicles, elevators and escal ators, ATMs, data storage devices, batteries, appliances, power tools, and more. 2. Honda Honda is the worlds sixth largest auto manufacturer, and number two out of Japan. Like the other Japanese car makers, Honda now produces many of its products either partially or entirely in other countries, but its largest individual facilities are still located in Japan. In addition to some of its cars, the bulk of Hondas motorcycle and ATV manufacturing business has remained in Japan. 1. Toyota The worlds #1 automaker is also Japans leading exporter in terms of sales. Although Toyota has gradually shifted some of its auto manufacturing operations overseas, many of its parts and finished vehicles continue to be produced in Japan for export, including the entire Lexus line. With a massive lead over everybody else, Toyota looks set to remain Japans number one exporter for the foreseeable future.
Source :datcp.wi.gov/.../exports/export...

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F. MAJOR TRADE POLICIES

Asian Economic Strategy under the New Growth Strategy

The Japanese government clearly set forth an Asian Economic Strategy under the New Growth Strategy. Specifically, the strategy aims to establish a Free Trade Area of the Asia Pacific (FTAAP) by 2020, double the flow of people, goods, and money, and contribute to the doubling of the income of Asia by promoting the growth and development of Asia as a whole. Among planned policy measures are liberalizing and facilitating trade and investment, building and improving a system for protecting intellectual properties, and developing jointly with Asian countries, international standards based on Japanese technologies, regulations and standards related to environment and product safety. (Appendix I)
Current Status of Japans Conclusion of and Negotiations about FTAs and EPAs

By October 2009, Japan put into effect or signed EPAs with 11 trading partners, namely Singapore, Mexico, Malaysia, Chile, Thailand, Indonesia, Brunei, the Philippines, ASEAN, Vietnam, and Switzerland. Trade value with these countries/regions accounts for 16.5% of the national total. The economic partnership agreement with ASEAN was the first EPA that Japan concluded with a group of countries. Japan is on the process of conducting negotiations with the Gulf Cooperation Council (GCC), India, Australia, and Peru. While agreements with the Republic of Korea has been suspended. The move toward integration of the Asia-Pacific market is to be accelerated, led by ASEAN, which has already concluded FTAs or EPAs with Japan, China, the Republic of Korea, Australia and New Zealand as well as with India. It will become increasingly necessary for companies to make strategic moves that take account of the EPAs and FTAs such as realigning their production and export operations. G. Processing Trade The land of Japan is very small (about one-fiftieth of Russia) although population of the two countries are not very different (1.5 trillion for Russia vs. 1.2 trillion for Japan). Japan is very poor in natural resources. So, Japan has to import a large amount of food, energy, and raw materials to support its population, and in order to earn foreign exchange to pay for the imports Japan has to export a large amount of goods, mostly manufactured goods. The pattern of the Japanese trade is often called processing trade, because it produces goods by processing imported raw materials. Therefore, the government put a great emphasis on expansion of exports. Due to the aggressive trade policies discussed in more detail in the next section, Japan emerged as one of the largest exporting countries which accumulate huge trade surplus. H. The Japanese Market The Japanese market is characterized by consumers with high levels of disposable income, and companies with a strong global orientation and willingness to invest in sustainable, long-term products and services. 18

Japanese buyers are drawn to premium, higher end goods and services offering higher returns on trade investment. Japan has made a name for itself as a nation of quality and innovation, and has staked its future on this value proposition. Along with this comes a strong commitment and loyalty to business partners, once acquired. Food purchases are the second largest expenditure for a Japanese family, after housing. Fresh foods are important and are purchased on a daily basis. Currently, consumers visit a variety of food outlets in order to purchase the highest quality food products. Japanese consumers desire high quality, nutritious, tasty, and safe food at a reasonable price. Product freshness and origin is very important and influences purchasing decision for foods and beverages. H.1 Characteristics of the Japanese Market 1. Rising income inequality splits Japans consumer markets As Japans economy has grown during the review period and as the country looks to future growth, there are signs of economic polarization the likes of which have not been seen since the post-war era. Rising income inequality is doing away with the proudly egalitarian society of Japans past in which the majority of Japanese considered themselves amongst the middle-class, a confidence that helped the country grow into an economic superpower. a. Consumers look to three Ss: sustainable, social and shareable During the past decade, the Western European and American marketplaces have come to terms with what has been called post-consumerism which involves consumption not simply for the sake of consumption but rather consumption that helps people realize their own potential while, at the same time, minimizing negative effects on the wider society and the environment. In Japan, post-consumerism is on the rise as consumers are beginning to turn away from the conspicuous consumption of the past and toward what some Japanese are beginning to refer to as an era of Three Ss. These three Ss include the sustainable, the social, and the shareable. They follow on from the Three Treasures sought by Japanese consumers during the immediate post-war era: washing machines, refrigerators and televisions. These were followed by the Three Cs; cars, air-conditioners and colour televisions in the 1960s. b. Female consumers gaining clout A number of changes are being brought about by members of the more financially independent and career-focused female population. The clearest changes (and the most publicised) are the countrys declining birth rates together with the postponement of marriage by many couples. As well, Japanese women are increasingly finding themselves at the heart of a trend that see many young Japanese decide to remain single and to live alone for longer periods of time, stretching the consumption habits of twenty-something consumers all the way into their mid-thirties. Marriage and raising children are no longer priorities to many young Japanese women and, consequently, this is transforming Japanese society. 19

c. Grey skies ahead for grey consumers Japans ageing population is a demographic and economic issue that is difficult to ignore. The greying of the population has influenced and will continue to influence virtually every consumer market in Japan. Members of Japans Baby Boomer generation are now reaching retirement and the large stockpiles of household wealth accumulated by these original pioneers in the Japanese economical miracle (three-fifths of savings in Japan are held by those over the age of 60 years) are now going to be either spent by the Baby Boomers themselves or passed on to younger generations who are more inclined to spend than save. On the other hand, there is a split between wealthy Baby Boomers and other less affluent Japanese pensioners who increasingly rely on their offspring to support them. d. Spending more time at home The Japanese used to spend little more at home, as a result of factors such as long work hours and small living quarters. Yet almost 50% of a representative sample of consumers across a range of age groups and geographies are now spending somewhat or significantly more time there. MyVoice Internet survey found that the top four way people chose to spend their days off were surfing the Internet, watching television or reading the newspaper, sitting around the house, or listening to music. e. Being health- and environment-conscious Japan has always been perceived as one of the worlds healthiest societies, thanks to a combination of lifestyle, diet, and genetics, and Japanese consumers are increasingly conscious of their health. H2. Consumer Products a. Household products The household products sector in Japan was estimated to be worth $16.4bn in 2009, which grew at a compound annual growth rate (CAGR) of 2% during 2004-09. Paper products as a category commanded the highest market share (by retail sales) of 36% in 2009. Impact of the economic recession, reducing consumer spending and an ageing population are all contributing to market maturity condition in the Japanese household products sector. b. Healthy Packaged Food The economic recession had a negative impact on naturally healthy packaged food. However, the rising consumer awareness of healthy food steadily sustained the demands for naturally healthy versions. Thus, current value sales of naturally healthy packaged food grew by 1% in 2010 to reach 436 billion. The demand for naturally healthy packaged food with high fibre content increased steadily in the review period. Sales of both NH high fibre biscuits and NH high fibre 20

bread rose by 3% in retail volume terms in 2010. Meanwhile, retail volume sales of NH high fibre breakfast cereals grew by 2% in 2010. Higher demand was generated by the recent popularity of macrobiotics, especially among women. In macrobiotic diets, whole grain is used as a staple food type (eg brown rice, brown wheat) in order to maintain well-balanced eating habits. However, retail volume sales of NH high fibre noodles decreased by 2% in 2010. The main type is inaka soba, which is made from buckwheat flour. Another type of soba, sarashina, made with refined buckwheat, is not included in NH high fibre noodles. The demand for both inaka soba and sarashina soba is mature. Soba has been widely consumed in Japan for more than 300 years. Consequently, demand was not boosted by recent trends such as macrobiotics and sales declined due to the economic recession. NH oils and fats registered robust current value sales growth in 2010 on the back of NH olive oil. The demand for NH olive oil has boomed as magazines and TV programmes such as DON! (Nippon Television Network Corporation) frequently introduced recipes featuring olive oil, such as salads. In 2010, sales of NH olive oil grew by 19%. I. PHILIPPINES JAPAN TRADE RELATIONS JPEPA is a comprehensive bilateral trade and investment agreement between Japan and the Philippines aimed at increasing trade and investment opportunities between the two economies. It is the first bilateral free trade agreement (FTA) for the Philippines after 50 years. Japan, on the other hand, has signed FTAs with six economies (Singapore, Mexico, Malaysia, Indonesia, the Philippines, Thailand, and Brunei) and is on various phases of FTA negotiations with other three economies (South Korea, Vietnam, and India). Japan is also actively pursuing FTA with the 10member ASEAN bloc with a view of finishing it up by November 2007 during the 13th ASEAN Summit. Japan cultivates a partnership with the Philippines so that the latter remains useful to the Japanese economic agenda. Relations are preserved through trade and investment linkages and official development assistance (ODA). National Statistics Office recorded Philippine merchandise exports to Japan in 2011 at $8.89billion with a double digit increase of 13.32% from the $ 7.84 billion in 2010. Electronics toping the list with $2.13billion followed by construction materials at $1.69 billion (Appendix J) Filipinos in Japan Filipinos in Japan formed a population of 202,592 individuals at year-end 2007, making them Japan's third-largest foreign community along with Brazilians, according to the statistics of the Ministry of Justice. Their population reached as high as 245,518 in 1998, but fell to 144,871 individuals in 2000 before beginning to recover slightly when Japan cracked down on human trafficking. In 2006, Japanese/Filipino marriages were the most frequent of all international marriages in Japan. As of March 12, 2011, the Filipino population of Japan was 305,972. 21

VI. CURRENT ISSUES A. OCCUPY TOKYO Occupy Tokyo is a huge and vibrant movement, putting 60,000 people in the streets but it was never sensationaloized nor heard much of Occupy Tokyo because the government control the Japanese media media mainstream. What sets Occupy Tokyo apart from other Occupy movements around the world is that their focus is largely on anti-nuclear activism. The reason for this is obvious- the Fukushima disaster, which still hasn't been fully contained and is according to some analysts getting worse. What Occupy Tokyo has in common with other Occupy movements is the reasons behind the problems they're fighting. Fukushima happened because of corporate crime- specifically, the fact that the company in charge of the plant knew it could never withstand a major tsunami, but chose to ignore that inconvenient fact in the name of profit. The general mood is the same as elsewhere: ordinary people in Japan are fed up with their leaders' lies, particularly the lies told by TEPCO, the Tokyo Electric Power Company, and how the government has handled the Fukushima disaster. Or rather, how it has avoided handling it. People in Japan are very angry but still Japanese media are simply not covering the fallout of the worst nuclear accident in history. Aftershocks from the Magnitude 9 earthquake which struck off the coast of Japan on March 11th are hardly mentioned in the Japanese media, but the fact is they are still ongoing and people are constantly stressed out by them. The economic aftershock is also beginning to take hold in a big way. The good news, says the SOTT forum member in Japan, is that people are now starting to wake up the fact that the Japanese government, TEPCO, and the media have been keeping the real situation all this time and that more people are starting to take action to actually deal with the situation rather than wishfully think it will just blow away out into the Pacific Ocean.

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VII. REFERENCES 1. Hrebenar, Ronald J. et al. Japan's New Party System. Boulder, CO: Westview Press, 2000. 2. Hunter, Janet. Concise Dictionary of Modern Japanese History. Berkeley, CA: University of California Press, 1984. 3. Mashiba, Yasuhiro and Yanase, Akiko "Changes of the main parties and their strength in the Diet"). ("Reference", an NDL monthly (Archive)) 651 (April 2005), p. 7081. Chiyoda, Tokyo: National Diet Library, 2005. 4. www.indexmindi.com/japan 5. www.portal.euromonitor.com/Portal/Pages/Search 6. www.slideshare.net/JCesme/the-new-japanese consumers 7. www.senate.gov.ph/publications/

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