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East Asia

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• A. Japan’s Economy after World War II

1. Japan was in ruins2. The U.S. helped to rebuild Japan’s

industries by giving them subsidies3. Subsidy—is money given by a

government to assist a private company4. The allowed companies to build large

factories and sell more goods, which boosted the country’s economy.

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B. High Technology Industries1. Since 1960s Japan has produced world’s

most modern robots

2. Making more watches and cameras than Germany and Swiss

3. By 1980s Japan made a large share of the world’s cars, electronic goods, skiing gear and bicycles.

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4. Also produced large amount of steel, ships, televisions, and CDs.

5. Japanese companies improved existing products1. Video cassette recorder invented in US, but

production costs were too high. A Japanese company bought the invention.

2. Today Japan is a leading producer of VCR’s

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6. Japanese had new ideas alsoa. Portable stereosb. Hand-held games

7. 1983 a European company and a Japanese company introduced the compact disc.

8. Working with American and European countries, Japan introduced the digital video disc (DVD).

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Reading Check: What are some high-technology products made in Japan?

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C. Success and challenges1. By the 1980s Japan had one of the world’s

strongest economies.

2. Japan’s economy depended on exporting its products to the rest of the world.

3. The rest of the world eagerly bought Japanese products—particularly cars, television sets,

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4. Other countries became angry because they bought Japan’s products, but Japan did not buy theirs.

5. This caused poor trade relations between Japan and other countries.

6. 1990s, Japan’s economy suffered a severe recession

7. Recession—a period of time when an economy and the businesses that support it shrink, or make les money.

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8. Since 2004, Japan has experienced improved economic growth, and it still has one of the largest economies in the world.

9. Manufacturing remains an important part of Japan’s economy.

10. Today, more people work in Japan’s service industries than in manufacturing.

11. Service industries include jobs in banking, communications, sales, hotels, and restaurants.

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• Reading check: How was Japan affected by the recession of the 1990s?

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D. Life in Japan1. Keiretsu (kay ret soo)—describes a group of

companies that join together to work toward one another’s success.

2. Some Keiretsu included the companies that make goods, the companies that provide the raw materials for those goods, and the companies that sell the goods.

3. The Japanese car industry has followed this model.

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4. The role of marriage is another example of tradition and change in Japan marriage has been the most acceptable social position for a Japanese man or woman.

5. Now, more and more Japanese men and women are choosing not to marry or to delay marriage—one result is that the birthrate is low

6. Birthrate—measure the number of live births each year per 1,000 people

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7. The role of Japanese women in the work place has changed

a. Before World War II, few women in Japan worked outside the home.

b. Today, there are more Japanese women working full time or part time than women who stay at home full time.

8. Although about half of Japan’s work force is made up of women, men hold most of the management positions.

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9. One of the resources a country needs to produce goods and services is labor.

10.Labor is the work that people do for which they are paid.

11.Japan does not have a growing labor force of young workers.

12. In the US and Europe, a steady supply of immigrants help

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13.Japan’s low birthrate affects the labor force.

14.Fewer and fewer workers have to support an aging population no longer working.

15.This makes the cost of producing goods and services higher in Japan than in countries with growing populations.

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Reading check: Why is the cost of producing goods and services higher in Japan than in other Asian countries?

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E. Assessment1. Summarize—tell how Japan’s economy grew

from the 1960s to the 1980s2. Identify—what happened that disturbed Japan’s

economy in the early 1990s?3. Explain—what tradition helps explain why

Japanese companies formed Keiretsu?4. Identify—what is one resource a country needs

to produce goods and services?5. Draw Conclusions—How would a low birthrate

affect a country’s labor force?

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