Introduction
At the present stage of development Japan is considered one of the most economically developed countries in the world. Despite all the upheavals of the country, by the size of industrial manufacture, as well as in terms of GDP (PPP), Japan is the fourth largest, after the USA, China and India. Japan is highly developed country in the field of electronics and robotics (Trading economics, 2014).
In Japan, there is a high economic freedom, the close cooperation of the government with the producers for economic growth, the emphasis on science and technology, as well as a strict work ethic. All this contributes to the development of the Japanese economy. The Japanese economy is characterized by the association of manufacturers, suppliers, distributors and banks in close groups called “keiretsu” and a relatively weak international competition in domestic markets. Also, there are a lot more social than production agreements such as the guarantee of lifetime employment in large corporations.
Motor industry is one of the main sectors of the Japanese economy. It is the development of this industry was the main reason for the rapid growth of the Japanese economy in the 20th century. One of the main items of the Japanese export is to export cars. Large engineering plants are in cities such as Hiroshima, Yokohama, and Hamamatsu.
Toyota Corporation is one of the largest automakers in the world. In 2012, it sold more than 9.7 million vehicles on five continents. It produces a wide range of vehicles under the brand names Toyota, Lexus, Daihatsu and Hino (Toyota Motor Corporation, 2014). Toyota is in the top-ten list of the 500 largest companies in terms of revenue in the world, which is published annually by the American magazine “Fortune” (July 2014 – 9th place).
Economic Variables
Economic factors consider the ability to realize how much to wait for from the prospective market.
- Japan is characterized as one of the major automobile markets in the world and is home to many manufacturers. Known brands of cars in Japan are Mazda, Toyota, Nissan, Honda, Mitsubishi, Suzuki and others.
- Inflation rate in Japan was 3.3% in August 2014 that weakly impact automobile market through a low general rise in prices (Trading economics, 2014).
- Japan reported a trade deficit equivalent to JPY 948.5 Billion in August 2014 that shows great dependent on international trade. High technology goods are the crucial export of Japan’s economic development. Major export partners are China (18%), the USA (18%), South Korea (8%), Taiwan (6%), Thailand (5%), Hong Kong (5%) and Western Europe (10%). Major import partners are China (22%), United States (8%), Saudi Arabia (6%), United Arab Emirates (5%), Australia (6%), South Korea (4%) and Western Europe (10%) (Trading economics, 2014).
- Japanese GDP was worth USD 4.9 trillion in 2013. Its growth rate is 0.5% in average.
- The unemployment rate means the dearth of labor force and in Japan was last reported at 3.5% in August 2014 (Trading economics, 2014).
- Japan is the participant of many international organizations, which give it required support and development (like G-20, G-5, G-7, G-8, G-10, WTO, IMF, ASEAN, APEC, UNESCO, etc.).
- The main priority of macroeconomic policy is the expansion of demand in the domestic market. The goal is to achieve in the next ten years, the average annual GDP growth rate of at least 2%. It is believed that this will require an increase in annual investment of at least 10%.
Political Factors
Political factors influence on administration decision making how to outline their policies and relate to the laws’ effects.
- Stability. Political and authoritarian environment is steady, open and progressive (Chanlett-Avery, et. al 2014).
- Political structure. As each company runs in globalization circumstances, its performance is highly under impact of these countries conditions.
- Relevant laws, statutes, policies that will concern the protection of inside industrial markets so on.
- Liberal Democratic Party is ruling.
- Japan is very conservative country. Therefore, the hallmark of state is perfected system of education, suggestion and suppression, namely the school, the army, the police, the court, censorship and collective responsibility (Chanlett-Avery, et. al 2014).
Conclusion
Japan withdrew from the economic downturn and in 2013 became the leader of the developed world in terms of economic growth. Japanese management is one of the most successful in the world. It is an effective HR management achieves high quality and competitiveness of Japanese products and technologies on the international market. And that is why education and training is given so much importance. That’s why even Toyota is not just a car brand, not just a successful company, or even just a set of advanced technology and fashion of “systems”. Toyota is also a kind of philosophy, which is based on an understanding of people and their motivations. The company produces 60 basic models for Japan, and a variety of options for overseas markets, with a very high degree of commonality – Toyota very successfully uses in new models of components and assemblies from the old.
References
Trading economics (2014). Japan – Economic Indicators. Retrieved from http://www.tradingeconomics.com/japan/indicators
Toyota Motor Corporation (2014). Annual Report 2013. Retrieved from http://www.toyota-global.com/investors/ir_library/annual/pdf/2013/p42_123.pdf
Chanlett-Avery, E., Cooper, W. H., Manyin, M. E. & Rinehart, I. E. (2014). Japan-U.S. Relations: Issues for Congress. Retrieved from http://mansfieldfdn.org/mfdn2011/wp-content/uploads/2014/02/USJ.Feb14.RL33436.pdf
