CONTEMPORARY WORLD

Socio 101 (51992)

MWF 4:30-5:30
CBE 808

Submitted by: Submitted to:

Acibar, Allen Jay Ms. Lettie Lambojon

Ahon, Inouie

Apuya, Khyle

Damos, Francis Elly

Lao, Frank Irvin

Mahinay, Jackfrancis

Naval, Jhon Kalvin

Paquibot, Mark Jayson

Sorongon, Angelie Mae

 INTRODUCTION

Japan is an island country in East Asia located in the northwest Pacific Ocean. It is bordered by the Sea of Japan
to the west and the Pacific Ocean to the east. Japan consists of over 6,800 islands, the largest of which are
Hokkaido, Honshu, Shikoku, and Kyushu. The capital of Japan is Tokyo, which is located on Honshu, the largest
island.

Japan is a highly developed country with a strong economy. It is the world's third largest economy by nominal
GDP. Japan is also a member of the G7 and the G20. Japan is a leader in many areas of technology, including
robotics, electronics, and automotive manufacturing.

 Japan's economy is heavily dependent on exports.

 The country's main exports include vehicles, electronics, and machinery.
 Japan is also a major importer of energy and food.

However, the Japanese economy has been facing some challenges in recent years, including an aging population
and a shrinking workforce.

The G7 and G20 have different purposes, but they both play an important role in global economic governance.
The G7 is a forum for the world's largest advanced economies to discuss and coordinate economic policies. The
G20 is a forum for the world's largest economies, both developed and developing, to discuss and coordinate
economic policies
 DATA COLLECTION AND ANALYSIS

Employment Rate in Japan

Employment Rate in Japan remained unchanged at 61.40 percent in August from 61.40 percent in July of 2023.

Related Last Previous Unit Reference

Unemployment Rate 2.70 2.70 percent Aug 2023
Employment Rate 61.40 61.40 percent Aug 2023
Labor Force Participation Rate 63.10 63.10 percent Aug 2023
Youth Unemployment Rate 3.60 3.60 percent Aug 2023

In Japan, the employment rate measures the number of people who have a job as a percentage of the working age
population.

Actual Previous Highest Lowest Dates Unit Frequency

61.40 61.40 65.40 55.90 1972 - 2023 percent Monthly NSA

Globalization affects Japan's economy and employment rate because of:

  Competition from foreign firms: Globalization has made Japanese businesses more vulnerable to
competition from foreign firms. This has led to job losses in some industries and sectors.

 Decline of manufacturing: Some Japanese businesses have moved their manufacturing operations
overseas to take advantage of lower labor costs. This has led to job losses in Japan.

 Weak domestic demand: Japan's domestic demand has been weak for many years. This is partly due to
the aging population and the country's high savings rate. Globalization has made it more difficult for
Japanese businesses to rely on domestic demand alone.

Furthermore, as for the impact that globalization has had on households, prices of daily necessities dropped
significantly due to the remarkable increase in imports, which benefited households. However, it is clear that the
decrease in exports and increase in imports influenced the decline in employment in Japan.

Gross domestic product (GDP) Growth of Japan

According to the Cabinet Office of Japan, Japan's GDP growth in 2022 was 1.11%.

 Japan gdp growth rate for 2022 was 1.03%, a 1.11% decline from 2021.
 Japan gdp growth rate for 2021 was 2.14%, a 6.42% increase from 2020.
 Japan gdp growth rate for 2020 was -4.28%, a 3.88% decline from 2019.
 Japan gdp growth rate for 2019 was -0.40%, a 1.05% decline from 2018.

Why is Japan's GDP growth rate declined?

There are a number of factors that have contributed to Japan's low GDP growth rate, including:
 The aging population: Japan has one of the oldest populations in the world. This is putting a strain on the
country's social welfare system and reducing the workforce.

Example:
Japan's aging population has led to a decline in the manufacturing sector, causing job losses and increased
investment in training. This has impacted other sectors like retail and service, as the manufacturing sector is a
major source of demand. Japan's low birth rate also makes it difficult for businesses to expand their workforce and
support the aging population. The government is offering incentives to hire older workers and reforming the
social welfare system to address these challenges. However, these reforms may take time to take effect, and Japan
is likely to continue struggling with economic growth due to its aging population.

 The high savings rate: Japanese households save a high proportion of their income. This reduces consumption
and dampens economic growth. ( “kakeibo” or “household ledger” Japanese saving method)

Example:
Japan's high savings rate has hindered economic growth, causing a decline in consumer spending and slow growth
in the retail sector. This has also affected the housing market, as households save for retirement, causing a
slowdown in the construction industry. The high savings rate also makes it difficult for businesses to invest in
new technologies and expand operations, as they rely on debt financing. The Japanese government is offering
incentives to businesses to invest in new technologies and make borrowing easier, but these reforms may take
time to take effect. Sony, a Japanese electronics company, has struggled to compete with foreign rivals due to its
high cost structure and high savings rate, despite attempts to cut jobs and outsource production.

 Weak domestic demand: Japan's domestic demand has been weak for many years. This is partly due to the aging
population and the country's high savings rate.

 Japan's economic growth is hindered by weak domestic demand, particularly in the automobile and retail
sectors. The decline of the automobile industry has affected other sectors like steel and plastics, as it is a
major source of demand for goods and services. The retail sector has also been struggling due to a high
savings rate and a reluctance of Japanese consumers to spend on discretionary goods. The government is
taking steps to address these challenges, such as offering incentives for businesses to invest in new
technologies and making borrowing easier. However, these reforms may take time to take effect. Toyota,
a Japanese automobile company, is struggling to sell its cars due to weak domestic demand.
  Competition from foreign firms: As mentioned above, globalization has made Japanese businesses
more vulnerable to competition from foreign firms. This has led to job losses and declining profits.

Example:
Japan's economic growth has been hindered by foreign competition, particularly in the electronics and steel
sectors. The electronics industry, once a global leader, has been struggling due to South Korean and Chinese firms
offering lower prices and innovative products. The decline of these industries has affected other sectors like
semiconductors and display, as the electronics industry is a major source of demand. The steel industry, once a
world leader, has also been struggling due to Chinese firms offering lower prices and more efficient production
methods. The Japanese government is offering subsidies to businesses to invest in new technologies and improve
productivity, but these reforms will take time to take effect. Sharp, a Japanese electronics company, has been
struggling to compete with foreign rivals, particularly South Korean firms, despite cutting costs and outsourcing
production.

 Structural reforms: Japan's economy has some structural problems, such as a rigid labor market and a lack of
competition in some sectors. These problems have made it difficult for the economy to adjust to the challenges of
globalization.

Example: Japan's economic growth has been hindered by structural reforms, including slow deregulation and a
rigid labor market. These regulations make it difficult for businesses to start and grow, making it difficult for
them to compete with foreign rivals. The rigid labor market also poses challenges for businesses to adapt to
changing market conditions, such as laying off workers when demand declines. Implementing structural reforms
can be difficult due to trade-offs between stakeholders. Nissan, a Japanese automobile company, has struggled to
compete with foreign rivals due to the rigid labor market. Despite attempts to cut costs and outsourcing
production, these measures have not been enough to turn the company around. While globalization has
contributed to Japan's low GDP growth rate, other factors like the aging population and weak domestic demand
also play a role.

JAPAN TRADE BALANCE

Japan has historically had a trade surplus, meaning that the value of its exports exceeded the value of its imports.
This surplus was largely driven by Japan's strong export-oriented manufacturing sector, which includes
automobiles, electronics, machinery, and precision instruments.

However, Japan's trade balance has fluctuated over the years due to various factors, including changes in global
demand, exchange rates, and economic conditions. In recent years, Japan has faced challenges such as a stronger
yen, which can make its exports more expensive and potentially impact the trade balance.

Japan's major trade items include123:

Cars
Electronic circuits and micro assemblies
Automotive parts or accessories
Semiconductor-making machinery
Heavy machinery such as bulldozers, excavators or road rollers
Industrial printers
Passenger and cargo ships
Plastics
Chemicals
Iron
JAPAN INCOME DISTRIBUTION
Japan is known for having relatively low income inequality compared to many other developed countries.
However, like other nations, it still experiences disparities in income distribution. Some key points to
consider about income distribution in Japan include:

 Low Gini Coefficient: Japan typically has a lower Gini coefficient compared to many Western
countries.

 Salaryman Culture: Japan has a strong tradition of lifetime employment and a "salaryman"
culture where many workers receive regular salaries with relatively uniform pay structures.

 Gender Wage Gap: While Japan has made progress in reducing gender-based income disparities,
a gender wage gap still exists, and women tend to earn less than men on average.

 Aging Population: Japan has an aging population, which can have implications for income
distribution.

 Part-time and Temporary Work: The prevalence of part-time and temporary work arrangements
in Japan has led to income disparities.

 Social Safety Nets: Japan has various social safety net programs, including healthcare and
pension systems, to provide a basic level of support to citizens, which can help reduce income
inequality.
JAPAN’S FOREIGN DIRECT INVESTMENT

Japan's foreign direct investment (FDI) patterns have evolved significantly over the years, both before
and after the country's increased participation in the global economy. transforming it from primarily an
exporter to an active participant in global investments and trade.

Before Increased Global Participation (Pre-1980s): -

Export-Oriented Growth: In the post-World War II era until the late 20th century, Japan primarily
focused on an export-oriented growth strategy. The Japanese government and businesses concentrated
on expanding exports to global markets.

Japan's FDI was relatively limited during this period. Japanese companies were primarily focused on
developing domestic industries and exporting goods.

Cultural and Language Barriers: Cultural and language differences could be perceived as barriers to
effective business operations in foreign markets.

Lack of Global Experience: Many Japanese companies lacked experience and knowledge of international
markets, which made them hesitant to venture abroad.

Home Bias: Japanese investors sometimes exhibited a "home bias," meaning they preferred to invest in
familiar domestic markets rather than foreign ones.

After Increased Global Participation (1980s Onward):

In the 1980s and 1990s, Japan's economy became more integrated into the global economy. Japanese
corporations, particularly in industries like automotive (Toyota, Honda), electronics (Sony, Panasonic),
and finance (Mitsubishi UFJ Financial Group), started to expand their global presence through FDI.
Negative impact of Covid-19 year 2020 many people lost their job and have low income
they rallied so much since the start of the year 2021, quite simply because people extremely
hardworking country and they are one of the developing country,

Japanese companies investing heavily overseas, particularly in North America, Europe, and Asia. These
investments were aimed at securing resources, accessing new markets, and acquiring technology and
expertise

Europe accounted for 44.0% of the total at 17.8

trillion yen and was the largest, followed by Asia at
9.7 trillion yen (24.0%), and North America at 9.5
trillion yen (23.4%).

Poverty Rates

Japan's overall poverty rate was relatively low compared to many other developed countries. The
official poverty rate in Japan was around 15%. This rate includes both relative poverty (households
with income less than half of the national median income) and absolute poverty (households unable
to afford basic necessities)

Summary info
During the Year Covid-19 has heavy negative impact it also lost the job and more homeless will
increased due to unable to afford food or Living Cost

Low Income: Insufficient income is a primary driver of food insecurity. Individuals or families with jobs
still struggle to make ends meet due to low wages, part-time employment, and precarious work
conditions.

High Living Costs: In regions with high living costs, such as expensive housing or healthcare, residents
may have limited financial resources left for food

Inflation: Rising prices of food and other essential goods can erode the purchasing power of households,
making it more difficult to afford an adequate diet.

Social and Economic Inequities: Systemic factors, such as income inequality and discrimination, can
contribute to unequal access to resources and opportunities, including access to food.

SECTORAL ANALYSIS
Manufacturing:
 Globalization has led to a strategic shift in Japan’s manufacturing sector towards services. The expansion
of trade and outward foreign direct investment (FDI) has boosted Japan’s economic growth. However,
inward FDI is not keeping pace, missing out on further growth opportunities. The globalization of the
Japanese economy is marked by strong ties with fast-growing Asian countries through production
networks. The main advantage for the Japanese economy from the globalization of Japanese firms is
increased productivity.

Japan's manufacturing sector has experienced significant globalization effects:

● Global Production Networks: Japanese manufacturing firms have extended operations
globally, establishing integrated supply chains. This strategy enhances efficiency, lowers
costs, and boosts competitiveness.

CONTRIBUTIONS:

● Exports: It plays a pivotal role in exports, particularly in industries like automotive,

electronics, and machinery.
● Employment: The manufacturing sector provides employment opportunities for a
substantial portion of the workforce.
● Economic Backbone: Manufacturing is a cornerstone of Japan's economy, historically
contributing significantly to GDP.

Agriculture:

Globalization has also affected Japan’s agricultural sector. Factors such as a decrease in farmland, a
shortage of agricultural labor, changes in consumer diets, and the opening of the Japanese market have
increased imports of many agricultural products. Moreover, Japan’s agricultural sector faces challenges
from several structural factors, including aging agricultural workers, high costs for imported inputs like
fertilizer and seeds, a fragmented industry structure, and high distribution costs.

The agriculture sector in Japan has been reshaped by globalization:

● Export Opportunities: Japanese agricultural products like Wagyu beef and sake have
gained global recognition. Exports contribute significantly to Japan's economy.

CONTRIBUTIONS:

● Food Security: Agriculture ensures domestic food security, maintaining a stable food
supply.
● Rural Employment: It supports rural economies by providing employment and income for
farmers.
● Cultural Exports: Certain agricultural products, such as Wagyu beef and sake, contribute
to cultural diplomacy and international trade.
 Services:

Japan’s service industries, including trade, are key contributors to its Gross National Product (GNP),
contributing about 74.1% of the total in 2004. These sectors are growing faster than manufacturing
and cover a variety of activities. As demand for various services is increasing with economic growth
and rising incomes in Asia, the Japanese service sector is expanding internationally.

Japan's services sector encompasses various industries influenced by globalization:

 Financial Services: Japanese financial institutions operate internationally, offering

diverse financial products and contributing to Japan's financial prowess.

CONTRIBUTIONS:

● Job Creation: The services sector generates employment for a diverse range of
professions.
● Export of Services: Japan exports various services, such as consulting, financial
services, and tourism, contributing to the balance of payments.
● Major Contributor: Services make up a substantial portion of Japan's GDP, including
areas like finance, tourism, and IT services

Technology:

The technology sector in Japan has been greatly influenced by globalization. Digital investment in Japan
could boost gross domestic product (GDP) and provide additional growth momentum. The pandemic
highlighted Japan’s uneven adoption of technology.

Japan's technology sector showcases globalization's profound effects:

● Startups and Innovation Hubs: Japan's technology sector is fostering startups and innovation
hubs, attracting investment and global talent.

CONTRIBUTIONS:

● Export of Technology Products: The sector exports cutting-edge technology products

like semiconductors and robotics, which contribute significantly to exports.
● Startup Ecosystem: Startups and innovation hubs promote entrepreneurship and attract
global investments.
● Innovation Driver: Technology and innovation are critical for maintaining Japan's
competitive edge.
 CASE STUDY

Companies that have positively impacted by globalization in Japan:

 Toyota - The automotive industry in Japan, represented by companies like Toyota, has benefited
from globalization by expanding its market reach worldwide. Toyota's global production and
supply chains have allowed it to tap into international markets and become one of the largest
automakers globally. Toyota's positive impact from globalization is the result of its ability to
leverage global resources, diversify its market presence, achieve economies of scale, innovate,
and adapt to local markets and regulatory environments. These factors have helped Toyota
become a global automotive leader.
 Sony - The electronics and entertainment industry, with companies like Sony, has thrived due to
globalization. Sony's products, such as PlayStation gaming consoles and consumer electronics,
have a strong global presence, leading to increased revenue and brand recognition. Sony's
positive impact from globalization is a result of its ability to adapt to global markets, invest in
innovation, build a strong global brand, establish effective distribution networks, and diversify its
product portfolio. These factors have allowed Sony to remain competitive and thrive in a
globalized economy.
 Nintendo - Nintendo is another example in the gaming industry that has benefited. With the
global appeal of franchises like Super Mario and Pokémon, Nintendo has successfully expanded
its market and generated substantial profits globally. Nintendo's positive impact from
globalization is the result of its timeless and universally appealing franchises, innovative
hardware, effective localization and distribution, strong partnerships, and the ability to adapt to
changing trends in the gaming industry. These factors have allowed Nintendo to maintain a
prominent position in the global gaming market for decades.
 Studio Ghibli- Studio Ghibli's animated films, such as "My Neighbor Totoro," "Spirited Away,"
and "Princess Mononoke," have gained widespread acclaim and a dedicated fan base worldwide.
The studio's partnership with international distributors and film festivals has helped these movies
reach a global audience. This international recognition has not only boosted Studio Ghibli's
reputation but also contributed to its financial success. Studio Ghibli's commitment to sharing its
unique brand of animation and storytelling with the world has allowed it to benefit significantly
from globalization. The studio's films and merchandise have found a global audience, resulting in
both cultural impact and financial success on a global scale.
 Nissin Foods- Nissin Foods, a Japanese food company known for its instant ramen products, has
certainly benefited from globalization in Japan. Nissin Foods was one of the pioneers in
introducing instant ramen to the world. The company's founder, Momofuku Ando, invented
instant ramen in the 1950s. Since then, Nissin has expanded its operations globally by
establishing subsidiaries and manufacturing facilities in various countries. This expansion has
allowed the company to tap into international markets and benefit from increased sales and brand
recognition worldwide.
Companies that have negatively impacted by globalization in Japan:

 Japan Airlines (JAL) - the country's flag carrier airline. JAL has faced several challenges in
recent years due to the globalization of the airline industry. The globalization of the airline
industry has brought increased competition from international carriers. Japanese travelers have
more options for international flights, including flying with foreign airlines, which has put
pressure on JAL's market share and pricing strategies. The COVID-19 pandemic brought about
extensive global travel restrictions and a significant reduction in international and domestic
travel. JAL, like other airlines, saw a sharp decline in passenger numbers, leading to financial
losses and operational challenges.
 Echizen Lacquerwar - Echizen Lacquerware is known for its exquisite craftsmanship and
centuries-old tradition of creating lacquerware products. Globalization has led to increased
competition from mass-produced and lower-cost goods, often manufactured in countries with
lower labor and production costs. This competition has put pressure on traditional crafts
companies like Echizen Lacquerware to compete on price and maintain profitability. Many
traditional crafts, including Echizen Lacquerware, rely on skilled artisans who have honed their
craft over decades. As these artisans age and retire, there is a shortage of young apprentices and
skilled craftsmen to carry on the tradition.
 Toray Industries, Inc. – Toray is a well-known Japanese multinational corporation that operates
in various sectors, including textiles and fibers. The globalization of the textile industry has
exposed Toray to increased competition from low-cost textile producers in countries with lower
labor and production costs. This has put pressure on Toray to compete on price and maintain
profitability. Like many other textile companies, Toray has faced pressure to outsource and
offshore its production to lower-cost regions to remain competitive. This can lead to the closure
of domestic manufacturing facilities and job losses.
 Nippon Steel Corporation - the Japanese steel industry has faced global competition,
particularly from countries like China, which have large-scale, low-cost steel production. The
globalization of the steel industry has exposed Nippon Steel to increased competition from low-
cost steel producers, particularly from countries like China and South Korea. These competitors
often benefit from economies of scale and lower production costs, which can lead to price
pressures on Nippon Steel's products.
 Sumitomo Mitsui Banking Corporation (SMBC) - Globalization has brought increased
competition to Japan's banking sector. Traditional Japanese banks have faced challenges from
international banks and fintech companies, forcing them to adapt to new technologies and
business models. Like other Japanese banks, SMBC has struggled in a prolonged period of low
interest rates, which has compressed net interest margins and reduced profitability from
traditional lending activities. Large multinational banks have expanded their operations in Japan,
offering a wide range of financial products and services. This has put pressure on traditional
Japanese banks like SMBC to compete and maintain market share.
 POLICY ANALYSIS

Over the years, Japan has pursued a variety of initiatives and policies to encourage and control economic
globalization. These initiatives are meant to promote economic growth, increase foreign investment, and
increase trade between nations. Here are some significant government programs and policies in Japan:
1. Economic Partnerships: In order to promote trade and investment, Japan aims to create
economic partnerships with a number of different nations. These partnerships frequently include
clauses that reduce or do away with tariffs and enhance market accessibility for goods and
services.

2. Promotion of Foreign Direct Investment: The Japanese government has taken actions to draw
in FDI. For foreign businesses wishing to invest in Japan, this includes providing incentives such
as tax breaks and streamlined administrative procedures.

3. Japan has implemented regulatory reforms to make it simpler for companies, including foreign
ones, to conduct business there. These changes are intended to streamline the licensing and
registration procedures and improve the business climate.
These laws and programs are a part of Japan's overarching plan to participate in the world economy,
advance trade, and foster an environment favorable to doing business abroad. Japan's perspective on
economic globalization is subject to change over time as a result of shifting economic, political, and
priority dynamics.

RECOMMENDATION

Globalization affects Japan's economy and employment rate because of:

 Competition from foreign firms: Globalization has made Japanese businesses more vulnerable to
competition from foreign firms. This led to job losses in some industries and sectors

-Other countries offering lower prices and more innovative or wider range of
 products which Japan did not get the satisfactions of a customer services regarding
a quality of production which the measurement of structural reform needs an
economic management risk innovation such as:
labor markets, materials, financial stability and corporate governance.

 Decline of manufacturing: Some Japanese businesses have moved their manufacturing operations
overseas to take advantage of lower labor costs. This has led to job losses in Japan.
• Foster employee engagement

- Collaborations and encouraging open communication which reflect

regarding improvement of performances to have a better outcome for your business

 Weak domestic demand: Japan's domestic demand has been weak for many years. This is partly
due to the aging population and the country's high savings rate. Globalization has made it more
difficult for Japanese businesses to rely on domestic demand alone.
• Marketing strategy
- A business’s overall game plan for reaching prospective consumers and turning
them into customers in a wide range of platforms to increase sales and achieve sustainable
competitive advantage in marketing strategy.

JAPAN INCOME DISTRIBUTION

•Low Gini Coefficient: Japan typically has a lower Gini coefficient compared to many Western
countries.

- Reducing inequality is a complex and long-term endeavor, requiring a multifaceted

approach. It often involves collaboration between government, civil society, businesses, and
individuals. Advocating for policies and practices that promote economic justice and equal
opportunities can have a positive and lasting impact on society.

•Promote Fair Wages: Advocate for fair wages and workers' rights. Support businesses
that pay their employees fair wages and provide benefits.

• Salaryman Culture: Japan has a strong tradition of lifetime employment.

- Work environment that promotes employee well-being, professional growth while
maintaining productivity and competitiveness particularly in terms of “Work-Life Balance,
Encourage Innovation and Training & Skill Development”.

• Gender Wage Gap: While Japan has made progress in reducing gender-based income disparities, a
gender wage gap still exists, and women tend to earn less than men on average.

- Implementing these recommendations that contribute to greater impact of equality in the

workplace and society which the development of Promoting Leadership Diversity and Equal pay
for Equal Work.
|
• Aging Population: Japan has an aging population, which can have implications for income distribution.

- Encourage the potential of its aging population for the benefit of society towards remain active in
workforce and provide training and re-skilling opportunities.
•Part-time and Temporary Work: The prevalence of part-time and temporary work arrangements in
Japan has led to income disparities.

- Disparities arising from part-time and temporary work arrangement should raise
awareness creating a pathway of Promoting Full-Time Opportunities and Skill development.

QUESTION AND ANSWER (10-15 items)

True or False

1. Japan is an archipelago country located in the northeast Pacific Ocean.

  FALSE
2. One of the reasons why Japan’s GDP growth rate declined is the aging population.
 TRUE
3. Surplus means that the value of its imports exceeded the value of its exports.
 FALSE
4. Salaryman culture is where many workers receive regular salaries with relatively uniform pay
structures.
 TRUE
5. Gender wage gap in Japan shows that women tend to earn more than men on average.
 FALSE
6. Japan’s poverty rate was relatively high compared to other developed countries.
 FALSE
7. Japan is the birthplace of luxury vehicles Bayerische Motoren Werke AG.
 FALSE
8. The main advantage for the Japanese economy from the globalization of Japanese firms is
decreased productivity.
 FALSE
9. Japan’s service industries, including trade, are key contributors to its Gross National Product
(GNP).
 TRUE
10. The technology sector in Japan has been greatly influenced by globalization.
 TRUE

Multiple Choice

11. Some Japanese businesses have moved their manufacturing operations overseas to take
advantage of lower labor costs. This has led to job losses in Japan.
A. Competition from foreign firms
B. Weak domestic demand
C. Decline of manufacturing

12. Japanese households save a high proportion of their income, which means that they have less
money to spend on consumer goods. This has led to a decline in demand for goods and services
from the retail sector.

A. The aging population

B. The high savings rate
C. Weak domestic demand
D. Competition from foreign firms

13. Japan was once a world leader in the automobile industry, but the industry has been struggling
in recent years due to _________.
 A. The aging population
B. The high savings rate
C. Weak domestic demand
D. Competition from foreign firms

14. Japan was once a world leader in the electronics industry, but the industry has been struggling
in recent years due to competition from South Korean and Chinese firms.

A. The aging population

B. The high savings rate
C. Weak domestic demand
D. Competition from foreign firms

15. Japan has one of the oldest populations in the world. This is putting a strain on the country's
social welfare system and reducing the workforce.

A. The aging population

B. The high savings rate
C. Weak domestic demand
D. Competition from foreign firms