Globalization and its Impact on the Japanese Economy

ECONOMICS
Student’s Name
Course
Professor’s Name
University
(City) State
Date

Globalization 1
Introduction
Noteworthy, globalization has contributed to the growth of the Japanese economy. Through
globalization, the Japanese Economy has benefited from migrant labor, outsourcing of raw
materials to grow local industries, technological advancements exchange, revenue for the
Japanese government through taxation of imports and cultural diversity. Unfortunately,
globalization is not mutually beneficial to all nations and Japan is no exception. On the negative
side, the rate of unemployment that risen among the native Japanese population, the imposition
of tariffs on exports to the United States has reduced the revenue for Japanese economy hence
the assertion that globalization doesn’t lead to mutually benefits for participating countries.
Overall globalization has created negative and positive effects on the Japanese economy.
Table of Macroeconomic indicators
Macroeconomic Indicator Effect of Globalization
GDP Per Capita Ranks 2 of out 34 for the year 1990-2016, absolute per capita gains
of 1,502 to 39046
GDP Over the years 1990 and 2016, the Japanese GDP has been on the
rise due to globalization.
INFLATION Owing to rising prices in crude oil, the prices of goods and services
in Japan have been affected by the fluctuation of the global oil

Globalization 2
prices
INCOME
INEQUALITY
Globalization affects low skills wages and not high skilled worker
wages thus enhancing the income gap between low and high
UNEMPLOYMENT Due to the migrant labor influx, there is low poor wage growth on
low skilled jobs and an increase in the skilled unemployment rate.
Most of the natives in Japan are unemployed.
EXCHANGE RATE Following the depreciation and appreciation of the Japanese
currency against the Euro and dollar,the Japanese economy has
grown due to yen appreciation against the dollar and decreased
when the yen depreciated in value.
According to globalization sheet performance Japan was ranked the second
country from GDP gains for the year 2016. Additionally, since the year 1990, the country’s GDP
has been on the rise between 37 thousand euros in the year 1990 to 47,280 thousand euros as at
the year 2016 due to globalization (Weib, Sachs & Weinelt 2018). Specifically, Globalization
affects low skilled workers wages as contrasted with highly skilled workers wages thus affecting
the Japanese economy and income per capita. On average, the Japanese per capita income has
increased over the years due to globalization. Through globalization, the Japanese economy has
obtained markets, foreign direct investments and outsourced raw materials from other globalized
economies (Ayumu 2017).
Advantages and disadvantages of globalization in Japan