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White Paper on White Paper on I i l E d T d 2009I i l E d T d 2009International Economy and Trade 2009International Economy and Trade 2009
(Summary)
June 2009Trade Policy BureauTrade Policy Bureau
Ministry of Economy, Trade and Industry
2009 White Paper on International Economy and Trade “Global Economic Strategy of Converting Crisis into Opportunities”
Ch t 1Chapter1The Global Economy Facing Challenges, its Current Situation and Issues … 14
3. Converting crisis into opportunities~ ①Market exploration of Asia and emerging economies
1. The increased amount of global money under management and the collapse of its management in U.S. as the background of the global financial crisis
2 I t d b th fi i l i i th l b l fl i
… 4
… 15
economies
4. Converting crisis into opportunities~ ②Appealing for Japanese attractive points to the rest of the world
2. Impacted by the financial crisis, the global economy flying on two engines of the advanced countries and emerging economies is now forced to fly on a single engine, that of the emerging economies
… 5 … 165. Converting crisis into opportunities ~ ③Developing the future by expanding domestic demand
Ch t 33. How were economies affected? Three patterns were identified
4. Economic measures of each country for today’s global
… 6
… 7
Chapter3 Global Economic Strategy and Foreign Economic Policy of Japan
y y grecession
5. Economic measures of each country /regions in terms of effects
Chapter2
… 8
… 19
… 21
1. Domestic and foreign integrated economic measures
2. Promotion of innovation in the “Volume Zone” Chapter2Direction of Japanese Economy in the Global Economic Crisis
1 Th l t i l d b t 11
… 22
… 23
3. Global development of the low carbon revolution
4. Multi-layer cooperation including industrial cooperation with countries rich in natural resources
1. The longest economic recovery was led by exports.
2. Background to the economic downturn : Industrial structural change toward high value-added
production
… 11
… 12
Chapter 1Chapter 1The Global Economy Facing Challenges, its C t Sit ti d ICurrent Situation and Issues
1.The increased amount of global money under management and the collapse of its management in U.S. as the background of the global financial crisis○Money under management including US pension funds and other advanced countries / foreign exchange reserves of the emerging countries increased globally.○This money mainly flowed into residential mortgage-backed securities (RMBS) in the U.S. forming a housing bubble The collapse of the bubble triggered a global financial crisisforming a housing bubble. The collapse of the bubble triggered a global financial crisis.
Global money under management doubled in 5 years
Surge in US residential mortgage-backed securities
8.9
8
9Residential Mortgage‐Backed Securities(1)
bonds
government bonds(2)
($ trillion)
27.1 97
110
100
120($trillion)
private
Doubled in5 years.
Amount of Debt Securities Outstanding Issued in the U.S.
$2 trillion+ increase in 1 100
120111
($trillion)
6.56.0
4.9
4 2
5
6
7MMFs(3)
agency bonds(4)
municipal bonds(5)
asset backed securities
74.3 20.5 22.2
24.8
59 58 59 57
68 74
82 80
privatewealth year.
48 80
equities
4.2
2.9
1
2
3
4
49 053.8
65.2
17.0 18.0 17.5 17.8
19.0 58 59 57
40
60pension, insurance,mutual fund
63
40
60
debt securities
0
1
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Note:(1) refers to residential mortgage‐backed securities collateralized by claims on mortgages(RMBS) issued by Fainnie Mae, Ginnie Mae, Freddie Mac .(2) refers to commercial Paper, bank acceptances and large time deposits etc.
(year)
2.7 6.2
40.1 37.7 38.2 36.0 45.1 49.0
0
20
foreign reserve
0
20
0.2( ) p , p g p(3) refers to securities issued by governmental agencies established to facilitate loans to students, homeowners or farmers (excl. (1)).(4) refers to securities issued by States, Cities or Countries for their funds raising.(5) refers to securities collateralized by claims on auto loans or credit cards.
Data: SIFMA(http://www.sifma.org/research/pdf/Overall_Outstanding.pdf).
99 00 01 02 03 04 05 06 07
Note: 1. Foreign reserve excludes gold. Other money: Total of Private Equity Fund and Hedge Fund. 2. Debt securities and stocks are total of US, Canada, UK, France, Germany, Italy, Netherland, Swizterland, Japan, Australia, Singapore and Hong Kong. 3. Pension, insurance, mutual funds, private invetsor money and other money are mainly consisted with advanced countries and do not indlude ones for emerging countries.Data: International Financial Services, London; CBS Fund Management 2003‐2008.
other money
4
07other money
2.Impacted by the financial crisis, the global economy flying on two engines of the advanced countries and emerging economies is now forced to fly on a single engine that of the emerging economiessingle engine, that of the emerging economies○ Financial crisis hit Main Street causing a worldwide decline in asset values and consumption caused by the worldwide credit crunch. ○ China India (and Middle East/Africa) have continued to maintain growth while all○ China, India (and Middle East/Africa) have continued to maintain growth while all the advanced countries marked negative growth, the first time for this since WWII.
Japan Marked the Biggest Drop in Investment money doubled globally over 5 years p gg pExport Among the Major Countries.
Growth rates of exports in goods to the world market of major countries
y g y y
‐ horizontal axis: GDP composition ratio of each country(red)‐ vertical axis :ForcastedGDP growth rate 2009 (black)*Dashed line shows the annualaverage growth rate
(GDP growth rate) 11.3%9.1%
7.3%(year‐to‐year basis %)Dashed line shows the annual average growth rate.
Demand in Advanced Countries to diminish
Ch
5%
6.5%
4.5%
4.6%5.9%
4.5%Middle East
5.9%6.2%
20
40
60 (year to year basis, %)
Cou es o d s hIna
India25 2% 22 4% 8 0% 5 1% 8 8%
2.62 4% GDP
2.8%2.4% 2.3%
2.7%3.0%
2.5%Africa2.0%
Other Emerging Countries
2 0% 8 4%China ‐24.5%
EU15 ‐22.5% Thailand ‐16.6%
Korea 8.5%
‐20
0
USEuro Area
Japan
a
UK
Other Advanced Countries
0%ASEAN5
0.0%World Total:- 1.3%
25.2% 22.4% 8.0% 5.1% 8.8%%
6.2% 2.0%
2.4%
2.4%
GDP composition ratio
Brazil-1.3%
2.0%2.5%
2.0% 8.4%
Germany‐23.7%
Japan ‐39.1%
‐60
‐40
nuary‐08
ruary‐08
March‐08
April‐08
May‐08
June
‐08
July‐08
ugust‐08
mbe
r‐08
tobe
r‐08
mbe
r‐08
mbe
r‐08
nuary‐09
ruary‐09
March‐09
April‐09
51
-5%- 2.8%
- 4.2% - 4.1%Canada- 2.5%
- 4.1%
Russia-6.0%
BRICsTotal
12.8%- 3.3% Data: “IMF World Economic
Outlook April, 2009”, “Economic Outlook”, Cabinet Office, Government of Japan.
Jan
Feb M Au
Septe
Oc t
Nove
Dece Jan
Feb M
Note: Local currency basis.Data: World Trade Atlas.
3.How were economies affected? Three patterns were identified
Credit Bubble Type
U S UK S i I l d
Export-led Type
J G
“Booming Emerging Countries”
Middle/East Europe
Features b
the crisis
House Price Increase Rate Net External Position vis-Export Dependency(*2)
U.S., UK, Spain, Ireland, etc.
Japan, Germany, S. Korea, Singapore,
etc.
Middle/East Europe Countries, etc.
before
(*1)
U.S.:Spain:UK
à-vis Banks(*3)
Estonia: 68.8%Latvia: 57.6%
p p y
Singapore: 230.9%Germany: 46.7%
12.6%12.6%11 8%UK:
Ireland:Hungary: 50.2%Romania: 32.5%
S. Korea: 46.4%Japan: 17.6%
11.8%11.6%
Sharp decline in domestic consumption due to collapse of housing
Great decrease in exports due to sharp decline in demand in
Sharp decline in money inflow from overseas due to the economic
Situatio
crisis
collapse of housing bubble and the turmoil of domestic financial system.
decline in demand in advanced countries such as the U.S.
due to the economic recession in the Western European countries
on after the
*1: Average increase rate from Jan 2003 to the month of the peek.
6*3:Net external position vis-à-vis banks/nominal GDP×100(as of Sep. 2008)
*2:Value of export of goods and services/nominal GDP×100( 2007)
countries.
4.Economic measures of each country for today’s global recession
○ Major countries took large-scale economic measures as well as a variety of○ Major countries took large-scale economic measures as well as a variety of financial stability measures.○ Confirmed total of $5,000 B (approx. ¥500T) of public spending by the participating countries at the April 2009 London Summit.participating countries at the April 2009 London Summit.
UK£2 8B
Korea81trillion Won
EU400 B Euro
£2.8B( ¥ 0.4T)
GDP ratio: 0.2 %
G China
(¥6.4 T)GDP ratio: 8.0%
U.S.
(¥54.9 T)GDP ratio: 3.3%
JapanGermany
85.5B Euro(¥11.8 T)
GDP ratio:: 3.4%
China4 T RMB(¥58 T)
GDP ratio: 13.3%
U.S.US$ 787.2 B(¥77T)
GDP ratio:5.5%
FY 2008 revised budget etc.※
(¥75T) GDP ratio: 14.8%FY 2009 revised budget(¥57 T) GDP ratio :11.2%
France36.4B Euro(¥5 0T)
(¥57 T) GDP ratio :11.2%
(¥5.0T)GDP ratio:1.9%
AustraliaAU$ 52 4 B
※: The budget and the tax reform in 2009 fiscal year(¥37T) are included.
N tAU$ 52.4 B(¥4.1 T)
GDP ratio:4.4%Data: Various Media.
Note:- Values for the U.S., France and the UK are the total amounts of public spending and tax cuts.- Values are project scale excluding the U.S., France and UK.- The E.U. includes the UK, Germany and France. 7
5.Economic measures of each country /regions in terms of effects ①○ Thanks to large-scale economic measures, global stock prices have at least bottomed outbottomed out
4,500
5,000 US(NY Dow Average)($)
9.15 Lehman Bros. bankrupt
$4,569(May 2008) 6,500
7,000 UK Stock Price Index(FT100 index)(point)
6,376 point(May 2008)
9.15 Lehman Bros. bankrupt
3,500
4,000
,3.23 US announces purchase of nonperforming loans of US financial institution.
$2,985(June 2009)△52% 4,500
5,000
5,500
6,000 3.23 US announces purchase of nonperforming loans of US financial institution.
4,453 point(June 2009)
△
2,000
2,500
3,000
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6
$2,195(March 2009)
52%
3,000
3,500
4,000
4,500
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6
3,512 point (March 2009) +15%
△45%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6
2008 20091 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6
20092008
15,000
16,000 Japan(Nikkei Average)
¥14,489(June 2008)
(¥)
9.15 Lehman
Bros. bankrupt
2,000
Korea(KOSPI Index)(point)
9.15 Lehman Bros.
bankrupt
1,889 point(June 2008)5,500
6,000
China (Shanghai SE Composite Index)
5,498 point(Jan 2008)
(point)
3.23 US announces purchase of nonperforming loans of US
10 000
11,000
12,000
13,000
14,000 3.23 US announces purchase of nonperforming loans of US financial institution.
¥9,768(June 2009) 1,400
1,600
1,800 3.23 US announces purchase of nonperforming loans of US financialinstitution.
1,395 point(June 2009)
3 000
3,500
4,000
4,500
5,000 (Jan. 2008)
9.15 Lehman Bros.
bankrupt
financial institution.
2,754 point(June 2009)
6,000
7,000
8,000
9,000
10,000
¥7,055(March 2009)
△51%
+18%800
1,000
1,200
939 point(Oct. 2008) +24%
△50%
1,000
1,500
2,000
2,500
3,000
1,707 point(Nov. 2008)
+19%
( )
△69%
8Data:Bloomberg. Negative percentages show the ratios of the bottom prices against the recent peak prices in 2008 , and positive percentages show difference between the ratios of latest prices(Jun 2009) and the bottoms.
1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 620092008
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 62008 2009
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 62008 2009
5. Economic measures of each country / regions in terms of effects ②○ Economic measures of each countries to gradually stimulate downturned consumption.
◆Germany(passenger automobile )◆Japan(automobile)
consumption.○ For Instance , in Japan and Germany, tax reduction and subsidies for automobile purchase worked positively for automobile sales to a certain degree.
39.9% 39.7%45%50
(ten thousand units) (year‐to‐year basis)year‐to‐year basis(right scale)
10%
70
80
(ten thousand units) (year‐to‐year basis)year‐to‐year basis(right scale)
◆ y(p g )◆ p ( )
April 2009, Jan. 2009,i t d ti f
30%40 260 thousand units
390 thousand units
480 thousand units
3.6%
0%60
70 pintroduction of tax cut.
introduction of subsidies.
0%
15%
20
30 units
290 thousand
‐10%40
50
‐15%10
290 thousand units
‐19.0%‐20%20
30
Decline of sales to stop.
20‐40%sales increase on year‐to‐year 18%
‐30%0 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5
Sales Unit‐25.3%
‐30%0
10
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5
Sales Units
year to year basis.
-18%
2008 20092008 2009
9Data:Japan Automobile Manufacturers Association. Data: Association des Constructeurs Europeens Automobiles (ACEA), Association
Auxiliaire de l‘Automobile. (Figure of May 2009 from The German Association of the Automotive Industry(VDA)).
Ch t 2Chapter 2
Direction of Japanese Economy in the Global Economic Crisisin the Global Economic Crisis
1.The longest economic recovery was led by exports.○ From 2002 to 2007, Japan’s economy experienced the longest recovery after , p y p g yworld war II, led by exports.○ Japan’s export dependence increased in the 2000’s and became the highest in 2007.
Comparison of Demand Components in Recovering Periods
Consumption grew sluggishly. Exports grew rapidly. Recently Japan’s export dependence increased rapidly, though it is lower than those of other countries.
170
180
1986~1991外需が
景気回復を主導(バブル景気)
Comparison of Demand Components in Recovering Periods
Japan’s export dependence(exports/nominal GDP)
those of other countries.
Exports led the recovery(Bubble boom)
(Large scale economic
140
150
1601993~1997
1999~2000
2002~2007(戦後最長の景気回復)
(大型景気対策)
(ITバブル)
14.0%
16.0%
18.0%
20.0%(Large‐scale economic measures boom)
(IT bubble)
(Longest economic recovery after WW II)
110
120
130
4 0%
6.0%
8.0%
10.0%
12.0%
Export Dependence of other countries(2007)Germany 46.7% South Korea 46.4%UK 25 8% Chi 41 3%
80
90
100
110
民間消費 住宅投資 設備投資 輸出 輸入
消費は
0.0%
2.0%
4.0% UK 25.8% China 41.3%
France 26.9% U.S. 11.9%
Export ImportPrivate consumption
Residential investment
Capital investment
Consumption:
70
80
備考:各期の最初の四半期の数値を100として指数化したもの。資料:内閣府「国民経済計算」から作成。
消費は
伸び悩み
11
Source:Cabinet Office “SNA statistics,” UN statistics.
psluggish growth
Note:Figure of each first quarter was indexed as 100.Source:Prepared from SNA (National Accounts of Japan), Cabinet Office, Government of Japan.
2.Background to the economic downturn① : Industrial structural change toward high value-added production○ Aft th l b l fi i l i i J ’ t d d d ti ll d J ’○ After the global financial crisis, Japan’s export decreased drastically and Japan’s economy entered into a full-scale recession.○ Japan’s exports shifted toward high value-added goods. Therefore, Japan’s economy was severely impacted by the global recession (The recovery of the globaleconomy was severely impacted by the global recession. (The recovery of the global economy may lead to a increase in production of high value-added goods.
Decrease of exports concentrated on highJapan’s export index of added value is increasing
20 (円ベース、前年比、%) 10月以降全品目が減少。Contribution to changes of export by item
Decrease of exports concentrated on high value-added goods such as automobiles, electric machinery and general machinery.
日韓輸出高機能化指数【総合】
( 年 ) 次 数値 09/4Export index of value added*:
Japan s export index of added value is increasing more rapidly than that of South Korea.
(Year to year,%)
その他 ‐13.910
0
10
(参考)鉱工業生産指数Index of Industrial Others▲13.9
130
140
日本
韓国
(2000年=100) (月次、原数値) 09/4South Korea and Japan (monthly)
一般機械 ‐9.4
電気機械 ‐7.3
自動車 ‐14 8
‐30
‐20
‐10
輸出総額Production General
Machinery▲9.4Electric Machinery▲7.3
100
110
120
09/3
Japan Export Value
自動車 ‐14.8
‐60
‐50
‐40 1月 2月 3月 4月 5月 6月 7月 8月 9月 0月 1月 2月 1月 2月 3月 (年月)
45.5%
Automobiles▲14.8
▲45.580
90
100
Korea
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
12
08年1
08年2
08年3
08年4
08年5
08年6
08年7
08年8
08年9
08年10
08年11
08年12
09年1
09年2
09年3
(資料) World Trade Atlas
(年月)
General machinery: engines, PCs, etc.Electric machinery : semiconductors, VCRs audio equipment, etc.
資料:三菱UFJ証券
*General Index created from prices of exports. When exports become more value-added, this index goes up through price increase.
93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Source : Mitsubishi UFJ securitiesSource : World Trade Atlas
2008 | 20091 2 3 4 5 6 7 8 9 10 11 12 1 2 3
2.Background to the economic downturn②: ○ The large share of consumer durables (high value-added) in Japanese exports to the U S is a background of the huge decline in Japanese exports In contraryto the U.S. is a background of the huge decline in Japanese exports. In contrary, Chinese exports to the U.S. contains more basic goods (low value-added products).
※Change of export to US Japan ‐46.1%(Mar 09 year to year US$) China 5 5%
In Japanese exports to the U.S., the share of automobiles is large.
(Mar. 09, year to year, US$) China ‐ 5.5%
China’s U.S. exports are dominated by basic goods such as clothes and
miscellaneous goods
16,000
日本の対米輸出の品目構成
その他
(百万ドル)(百万ドル)
40,000
中国の対米輸出の品目構成
その他食料・資源
(百万ドル)(Million $)Goods component of Japanese exports to the U.S. (Million $) Goods component of Chinese exports to the U.S.
miscellaneous goods.
OthersOthersFood
2,940(5 6%)
2,787( 5 2%)
2,796(0 3%)
10,000
12,000
14,000 その他食料・資源衣類・雑貨鉄鋼製品化学製品一般機械
械
25,000
30,000
35,000 食料・資源鉄鋼製品化学製品輸送機械一般機械電気機械
OthersFood MaterialsClothes SteelChemicalsGen Mach
Food MaterialsSteelChemicalsTrans MachGen MachEl Mach
5,056 5,187 5,145
2,629(‐5.9%)
2,509(‐4.6%)
2,728(8.7%)
1,627(‐40.4%)
(5.6%) (‐5.2%) (0.3%)
1,703(‐39.1%) 4,000
6,000
8,000 電気機械輸送機械
6 647
5,016(36.5%)
5,787(15.4%)
6,093(5.3%) 5,596(‐8.2%)
5,538(37.8%)
5,251(‐5.2%)
5,293(0.8%)
4,940(‐6.7%)
5 000
10,000
15,000
20,000 電気機械衣類・雑貨El Mach
Transport Machines
Clothes
(6.5%) (+2.6%) (‐0.8%) 1,949(‐62.1%)
, ( )
0
2,000
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3
5,490(10.9%)
6,647(21.1%)
5,870(‐11.7)
5,913(0.7%)
( )
0
5,000
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3
2006 2007 2008 20092006 2007 2008 2009
備考:数値は各年3月の値。括弧内は前年同月比。資料:米国商務省センサス局、経済分析局統計から作成。
備考:数値は各年3月の値。括弧内は前年同月比。資料:米国商務省センサス局、経済分析局統計から作成。
2006 2007 2008 2009
備考:数値は各年3月の値。括弧内は前年同月比。資料:米国商務省センサス局、経済分析局統計から作成。 13
Note : Figures are export values of March in each year.Parentheses are year on year change, %.
Source: Census Bureau, U.S. government
Note : Figures are export values of March in each year.Parentheses are year on year change, %.
Source Census Bureau, U.S. government
3.Converting crisis into opportunities ~ ①Market exploration of Asia and emerging economies○ The markets of emerging economies that have a rising middle-class offers Japanese companies great○ The markets of emerging economies that have a rising middle class offers Japanese companies great opportunities. ○ In such markets, however, the competition with South Korean and Chinese companies is severe. ○ In order to succeed, localization of product development and procurement, and recruitment of local staff are necessarynecessary.
Competition with Korean companies in the Chinese market, with Chinese companies in other emerging markets is getting severe
The Asian middle class market is drastically expanding.
9
10ベトナム シンガポール
香港 フィリピン
8.8億人
(億人)Population of Asian middle class Imports of emerging economies from main export
countries (2007)
other emerging markets is getting severe.
Russia6.2 times
(100 millionpeople)
Vietnam
Hong Kong
Singapore
The Philippines
88 millionpeople
6
7
8 マレーシア インドネシア
タイ 台湾
中国 インド
韓国
ChinaMiddle EastJ:JapanC:ChinaK:KoreaU:U.S.G:Germany
Malaysia
Thailand
China
South
ppIndonesia
Taiwan
India JKU
C UGJ
O
GCJO
3
4
5韓国
1 4億人
中国
4.4億人India
ASEANAfrica
G Ge a yF:FranceO:The other
countries
Korea China44 millionpeople
UO
C UGJO
0
1
21.4億人
インド
2.1億人BrazilIndia
21 millionpeople U
CGJ
O
CJ
UO
CFGJO
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008
備考:世帯可処分所得5,001ドル以上35,000ドル以下の家計比率×人口で算出。資料:Euromonitor International「World Consumer Lifestile Databook 2009」から野村総合研究所作成。
Note: This figure shows imports of emerging economies from three main export countries, (Japan,) and "the other countries"
Middle Class: Population of households with disposable incomes ranging from $5,001~ $35,000
14
4.Converting crisis into opportunities~ ② Appealing for Japanese attractive points to the rest of the world○ It is important for Japan to disseminate its excellent/ leading technology (e g○ It is important for Japan to disseminate its excellent/ leading technology (e.g. environmental, energy saving and water disposal, technology) and culture (animation, fashion and sightseeing resources, etc.) abroad. Such exports can also help provide solutions to global problems.solutions to global problems.
The contents industry (except the game industry) has an import surplus. It is necessary
Green FactoryA system which cultivates vegetables and fruits
メディア・ソフト別の輸出入状況
to enter into world market which is 10 times the size of the market in Japan.
y gusing artificial culture and light, without soil. It is not affected by weather or injury by continuous cropping. 20 harvests per year are possible. Export
t ti l i t Export & Import of Japanese contents(100 million
2,327
2000
2500
メディア ソフト別の輸出入状況(億円)potential exists. Export & Import of Japanese contents(100 millionYen)
export
660
331
1000
1500
輸出
輸入
import
68 26 45 10730288
145331
0
500
映画 ゲーム 音楽 雑誌 書籍
輸入
Movies Games Music Magazines Books
(資料)総務省情報通信政策研究所「メディア・ソフトの制作及び流通の実態
(2006)」
Sample : Fairy Angel(Kitayama, Kyoto) 15
Source: Ministry of Internal Affairs and Communications, Institute for Information and Communications Policy, "Realities of Production of media software and circulation(2006)."
5.Converting crisis into opportunities ~ ③ Developing the future by expanding domestic demand ○○ Japan has a 300 trillion-yen consumption market and 1,500 trillion-yen in household financial assets. Taking consumer demand is inevitable for growth.○ Even in this economic crisis, there are many companies which ensure profit by i itingenuity.
Ch t i ti Fi ld d C iCompanies Actively Fighting the Recession
Characteristic Field and Companies
In-depth customerservice
Tokyo Disney ResortHiiragi-ya(high-class Japanese style hotel), etc.g y g p y )
High-quality, low price goods
UNIQLO, Nitori, Kappa-Sushi, etc.
New goods / services Blu-ray, Home-delivery DVD rental shops, etc.
Niche Market ROYCE’ (chocolate sold only in Hokkaido)Tombo (frozen jelly sold only in zoos) etc.Tombo (frozen jelly sold only in zoos) etc.
Solution for inconvenience or dissatisfaction
Maruetsu(Supermarket:home delivery)Nakamura Brace(orthopedic & rehabilitation devices) etc.
F i “i di id l B (Shi k i)Focusing on “individual market” rather than “mass marketing”
Benesse(Shinkenzemi)Sony Music Entertainment(reissued CDs) etc.
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Chapter 3Global Economic Strategy and Foreign Economic Policy of JapanForeign Economic Policy of Japan
Global economic strategy and foreign economic policy of Japan - The four prioritized fields
1 “D ti d f i i t t d 2 Promotion of innovation in the
p
1. “Domestic and foreign integrated economic measures”Japan as a trade-oriented nation, growth in foreign demand around the world is the greatest economic
2.Promotion of innovation in the “volume zone”The market development of the emerging countries is essential for the diversification of the investment destination. demand around the world is the greatest economic
measure.- Drive forward the concept of doubling the size of Asia's economy- Deterrence of protectionism (WTO Doha Round and Economic Partnership Agreements etc )
- Promotion of new innovation by low cost technology- Maintenance of the investment environment by investment-protection treaties and intellectual property protection-Encourage home remittances of profit on foreign investment
Economic Partnership Agreements, etc.)- International development of infrastructures-related businesses including electric power supply, transportation, water supply, services industries and contents industry
3.Global development of the low carbon revolution
4. Multi-layer cooperation including industrial cooperation with countriescarbon revolution
Aim to become a “problem solving nation“ tackling global issues.- Promotion of international energy conservation cooperation etc
industrial cooperation with countries rich in natural resourcesMultilayer development of industrial cooperation, etc. with resource countrycooperation, etc.
- Promotion of overseas market expansion strategy that centers on low carbon technology.
- Support resource countries by providing technologies, etc. - Strengthening international exchange in various fields as sightseeing and education, etc.
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1. Domestic and foreign integrated economic measures○ Adding to domestic demand expansion, Japan will promote domestic and foreign i t t d i i i t ith A i b ti i f
(1) Drive forward the concept of doubling
integrated economic measures aiming to grow with Asia by promoting expansion of domestic growth of Asia, the “Growth center in the world.”
Industrial aorta between Delhi Mumbai
BIMP Wide area
Mekong river valley synthesis development
8 days by landHanoi
●Delhi
● ●
(1) Drive forward the concept of doubling the size of Asia's economy‐ Cooperation in maintenance of the large area infrastructure and the social security system, etc. t d d ti d d f A i coordinative
development
8 days by land and sea route
Bangkok●
●
Ho Chi MinhChennai
Mumbai
●
to expand domestic demand of Asia.‐ Promote economic cooperation with Asia such as system sharing is promoted (utilizing APEC 2010 in Japan).
Mekong Indian industrial aorta
2 weeks by only sea route
●
Singapore
By utilizing the Economic Research Institute for ASEAN and East Asia (ERIA), establish the foundation for distribution infrastructure (industrial aorta etc ) aiming for market
IMT growth triangle zone
e.g. Approx. 2 weeks is needed to go from Ho Chi
(industrial aorta, etc.) aiming for market integration of east Asia. (Right figure)
Minh (Vietnam) to Chennai (India) via sea route of Strait of Malacca. When the land /sea route connecting Cambodia and Thailand is established, it will be shortened to 10 days and will be 8 days if Japanese traffic technology etc.June 3, 2008 and will be 8 days if Japanese traffic technology etc. were to be introduced .
Note: BIMP: Brunei, Indonesia, Malaysia, and the Philippines. IMT: Indonesia, Malaysia, and Thailand.
ASEAN board of directors when ERIA is established
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(2)Promotion of trade investment liberalization and deterrence of
One Village, One Product activityl d d l l fliberalization and deterrence of
protectionism- Promotion of WTO Doha Round- Promotion of Economic Partnership
Implemented as a development support plan for developing countries by the WTO Doha Round promotion. Aimed to discover specialties of the developing
i d f h d l fp
Agreements (EPA), etc. countries, and to foster the development of attractive commodities that can be bought also by foreign countries.
Measures for protectionismThe measures of the governments around the world that
A "One Village, One Product Market" is set up in Narita Airport and Kansai Int’l airport. It is an exhibition and spot sale featuring 380 articles from 36 countries.
Market in Narita Airport
The measures of the governments around the world that can influence export and the investment is increasing rapidly after the economic crisis. The understood protected trade measures goes up to about 130 by 30 countries. They took effect after Sep. 2008
Market in Narita Airportwhich were against the declaration of the head of the London summit. Measures that Japan could be influenced by amount to 24 by 9 countries.
Examples of trade measures○Introduction of Buy American articles (U.S.)○ Introduction of expansion of import permission system introduction (Argentina)
《example of commodity》
Tinplate bicycles※produced by recycled
permission system introduction (Argentina)○ 13% tariff raise in cross‐sectoral articles (Ukraine). ○ Tariff rate increase for cars and flat panel ※produced by recycled
empty cans, etc. (Madagascar)
pTVs, etc. (Russia)
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2. Promotion of innovation in the “Volume Zone”○ Aims market gain of interlayer segment (population about 880 mil.) of the Emerging market= “Volume Zone”Volume Zone○ Support enterprises that aim to gain in the “Volume Zone innovation” in areas of developing of the technology of lowering the cost while maintaining the quality of products /consulting in marketing approach method, etc.
Market structure Profit profile of enterprise
Product portfolio of Japanese firms (example of automobile )(1) Promotion of “Volume Zone Innovation”
High‐end
High interest( Rolls‐Royce / Ferrari, etc. )
‐ Developing technology of lowering the cost (local procurement and single function design, etc. )‐Marketing for interlayer(Fostering local human resource, local R&D, etc. )
= High interest profit
Strong field of Japanese
firms
(2) Environmental maintenance for licensed production
=Upper middle‐end
( Lexus / Infiniti, etc. )
Low interest profit
firmslicensed production‐ Proactive conclusion of investment treaty‐ Protection of intellectual property rights( Anti‐Counterfeiting Trade Agreement : ACTA etc. ) =Middle‐end
( Volume zone)profit
The profit creation is
(3)Encourage home remittances of profit on foreign investmentC ll ti f d li t t ti
Field with potential of high market growth in the
future
( Corolla /Fit, etc. )
The profit creation is difficult if done alone by single Japanese firm. ( Nano (Tata Co.
(India)) etc. )
‐ Cancellation of duplicate taxation‐Encourage home remittances of dividends from overseas subsidiary companies’ profit
future
=Low‐end
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3. Global development of the low carbon revolution○ Build foundation for framework in global cooperation in the energy conservation
d i t l d t th th l b l b i f th d l t fand environmental areas and strengthen the global basis for the development of a low carbon society.○ Additionally, promote an overseas market strategy that centers on low carbon technology etc which is one of Japan’s major strengthstechnology, etc. which is one of Japan s major strengths.
The next generation energy parks(1) Promotion of international conservation of energy cooperation
札幌市(北海道)札幌市(北海道)
六ヶ所村(青森県)六ヶ所村(青森県)
真庭市(岡山県)真庭市(岡山県)
of energy cooperation - The discussion in G8 led by Japanese initiative. - International Partnership for Energy Efficiency Cooperation (IPEEC)- Japan-China Energy Conservation and Environmental Forum
J U S ti i l di d i t l
Sapporo City (Hokkaido)
RokkashoVililage(Aomori Pre.)Maniwa City
(Ok P )
太田市(群馬県)太田市(群馬県)
出雲市(島根県)出雲市(島根県)
山梨市(山梨県)山梨市(山梨県)
真庭市(岡山県)
北九州市(福岡県)北九州市(福岡県)
- Japan-U.S. cooperation in leading edge environmental technology field
(2) Promotion of cooperation in environmental areas between industries
(Aomori Pre.)Izumo City (Tottori Pre.)
(Okayama Pre.)
Yamanashi City (Yamanashi Pre.)
Ota City (Gunma Pre.)
Ibaragi
North Kyushu City (Fukuoka P )
茨城県茨城県
玄海町(佐賀県)玄海町(佐賀県)
愛知県愛知県
開園(2009年4月現在)
environmental areas between industries- Worldwide Japanese Business Alliance for Smart Energy etc.
Ibaragi Pre.
Aichi P
Pre.)
Genkai-cho(Saga Pre.) (opened as of
April 2009)
御坊市(和歌山県)御坊市(和歌山県)長崎県長崎県
阿南市(徳島県)阿南市(徳島県)
愛知県
Opened
*Th t ti k
Nagasaki Pre.
Pre.
Gobo City (Wakayama Pre.)
Anan City (Tokushima Pre.)
To open
G8 Energy Ministerial Meeting(May 2009, Rome)
*The next generation energy parks: Experience-based study facilities with equipment such as solar energy generation. Inventiveness that makes the best use of traits of each places can be seen.
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4. Multi-layer cooperation including industrial cooperation with countries rich in natural resources○ In addition to top diplomacy to the resource countries, promote wide industrial cooperation as cooperation in universities and environmental, technical spheres, etc.
Main countries/cities of resource country visited by Prime
April and May 2007The Minister of Economy Trade and Industry
Main countries/cities of resource country visited by Prime minister and Minister of economy, trade and industry
(after 2007)(1) Ministerial‐level top diplomacy and dispatch of public and private missions, and the promotion of concluding EPAs and investment treaties.
April 2008The Minister of Economy, Trade and Industry (Kazakhstan)
The Minister of Economy, Trade and Industry (Uzbekistan, Kazakhstan, and Saudi Arabia)
(2) Support resource countries by providing technologies, etc. and build reciprocity relations.
February 2009Prime Minister (Russia)
June 2008The Minister of Economy, Trade and Industry (Saudi Arabia Kuwait and Iraq )
In June, 2008The Minister of Economy, Trade and Industry (UAE)
(3) Strengthening international exchange in various fields as sightseeing and education, etc.
(e.g.)Make presentation at the largest travel exposition in Dubai
April 2007Prime Minister (Saudi Arabia)
(Saudi Arabia, Kuwait, and Iraq )
November 2007The Minister of Economy, Trade and Industry (South Africa and Botswana)
June 2008The Minister of Economy, Trade and Industry (Brazil)
‐ Make presentation at the largest travel exposition in Dubai.‐ Establish direct flight from resource countries to Japan.‐ Introduce Japanese education system , which has a high
reputation, into the Middle East.
August and September 2008 Senior Vice Minister of Economy, Trade and Industry ※ Combination with the Ministry of Foreign Affairs (Botswana, Mozambique, Madagascar, and South Africa)
December 2008: Attended the London Energy Ministerial Meeting. April 2009: Sponsored Asian Ministerial Energy Roundtable Meeting. May 2009: Attended the G8 Energy Ministerial Meeting.
In April 2009, Asian Ministerial Energy Roundtable 23