Chapter 5 International Trade
The Evolution of Trade
Chapter 5 International Trade Evolution of Trade Trade can liberate the entrepreneurial spirit and bring economic development to a nation and its people. There are many entities to the world of International Trade. International Trade is the Purchase, sale or exchange of goods and services across the national borders. The Learning Objectives that we will gain from this chapter are describing the relation between international trade volume and world output and Identify overall trade patterns. Describing mercantilism and explain its impact on world powers and their colonies. Explaining the theories of absolute advantage and comparative advantage. Explaining the factor proportions and international product life cycle theories. Explaining the new trade and national competitive advantage theories. Each of these companies as well as the countries are perfect examples of International trade. We presume that the knowledge and the content of this information will not only give a better of understanding of International trade, but open the readers mind for a visual aid of our countries as well as other trade system.
Japan is an island nation in East Asia. Japan lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia. Japan is a constitutional monarchy where the power of the Emperor is very limited. In 2009 the Democratic Party of Japan became the ruling party. Since the late 19th century the Japanese judicial system has been largely based on the civil law of Europe, notably Germany. Japan is one of the world's leaders in the development of new environment-friendly technologies, and is ranked 20th best in the world in the 2010. Japanese population subscribe to Buddhism or Shinto. Taoism and Confucianism from China have also influenced Japanese beliefs and customs. More than half of Japan’s population speaks Japanese as their first language. Japanese writing uses kanji and two sets of kana, as well as the Latin alphabet and Arabic numerals. Primary schools, secondary schools and universities were introduced in 1872. Japan, health care is provided by national and local governments. Payment for personal medical services is offered through a universal health insurance system that provides relative equality of access, with fees set by a government committee. Japanese culture has evolved greatly from its origins. Contemporary culture combines influences from Asia, Europe and North America. Sumo is considered Japan's national sport. Japanese martial arts such as judo, karate and kendo are also widely practiced and enjoyed by spectators in the country.
(2012. U.S. Department of State.)
Japan's economy has moved from manufacturing towards services. Its companies have successfully used the countries of Southeast Asia as pools of low cost labor. The change to a more service economy also shows changing tastes of Japanese consumers. Japan lacks many raw materials needed for industry and energy, such as oil, coal, iron ore, copper, aluminum and wood. Japan must import most of these goods. Japan purchases oil from the Middle East. In order to pay for these imports, Japan must export a variety of manufactured goods to other countries. Major Japanese exports include electronic equipment and cars. In 1853, the U.S. government demanded that Japan reopen trade with the West. In 1854, the U.S. government forced the Japanese government to sign a treaty, opening Japan up to trade with the U.S. Japan remains a major trade partner for the EU and Europe is a very important market for Japan. Japan is also a major investor in the EU. Imports from Japan to the EU are dominated by machinery and transport equipment and chemical products. The Japanese yen is the official currency of Japan. It is the third most traded currency in the foreign exchange…