Japan and the Japan and the WorldWorld

Chapter 19, sections 2-3Chapter 19, sections 2-3

Activating QuestionsActivating Questions

What is “trade imbalance?”What is “trade imbalance?” What are war “reparations?”What are war “reparations?” What is “pacifism?”What is “pacifism?” Why do many nations blame Japan Why do many nations blame Japan

for the trade imbalance?for the trade imbalance?

““America ni mo America ni mo Makudonaruda ga aru”Makudonaruda ga aru”

““Even in America, they have Even in America, they have McDonald’s!”McDonald’s!”

The Japanese have absorbed foods and The Japanese have absorbed foods and styles from many other nations.styles from many other nations.

The names of many Japanese The names of many Japanese manufactures – for example, Sony and manufactures – for example, Sony and Toyota – are world famous.Toyota – are world famous.

Security and DefenseSecurity and Defense In reaction to WWII, In reaction to WWII,

the Japanese the Japanese embraced a policy of embraced a policy of pacifism, or opposition pacifism, or opposition to the use of force to the use of force under any under any circumstances.circumstances.

Japan’s 1947 Japan’s 1947 constitution renounced constitution renounced war and barred the war and barred the government from government from maintaining a military maintaining a military force. force.

For protection, Japan For protection, Japan allied itself with the US.allied itself with the US.

During the Cold War, During the Cold War, the US urged Japan to the US urged Japan to build its own defensive build its own defensive forces. Japan’s economy forces. Japan’s economy had recovered and had recovered and Americans felt that Americans felt that Japan should share the Japan should share the cost of protection.cost of protection.

At first, Japan resisted At first, Japan resisted the pressure to rearm. the pressure to rearm. In time, it did set up a In time, it did set up a Self-Defense Force.Self-Defense Force.

Continued Pacifism …Continued Pacifism …

Japan bans taking part in any Japan bans taking part in any overseas military action.overseas military action.

During the 1990 Persian Gulf War, During the 1990 Persian Gulf War, the US set up a multinational force the US set up a multinational force to oppose Iraq’s invasion of Kuwait.to oppose Iraq’s invasion of Kuwait.

When asked to join the alliance, When asked to join the alliance, Japan sent money, but no troops.Japan sent money, but no troops.

9 -11 - 019 -11 - 01 After the suicide After the suicide

hijackings in the US, hijackings in the US, the Japanese began the Japanese began to worry about their to worry about their own security from own security from acts of international acts of international terrorism. terrorism.

The Japanese Diet The Japanese Diet passed new laws passed new laws that allowed some that allowed some military cooperation military cooperation with other nations.with other nations.

They let Japan’s They let Japan’s Self-Defense Self-Defense Forces take a Forces take a limited, non-limited, non-fighting role in the fighting role in the US-led war on US-led war on terrorism.terrorism.

Japan and the Global Japan and the Global EconomyEconomy

For decades, Japan has been a key player in the

global economy.

During its economic boom, people from western and nonwestern nations went to Japan to study its business methods and to learn from its success.

Uh-OhUh-Oh

Japan was hit by Japan was hit by an economic an economic recession in 1989.recession in 1989.

Banks were faced Banks were faced with bad debt, with bad debt, companies went companies went bankrupt and bankrupt and unemployment unemployment roserose

Japan’s Japan’s government government seemed powerless seemed powerless to end the to end the recession. recession.

The Trade ImbalanceThe Trade Imbalance The trade imbalance occurred because The trade imbalance occurred because

Japan exports more goods to those nations Japan exports more goods to those nations than it imports from them.than it imports from them.

During the 1980s and 1990s, the issues of During the 1980s and 1990s, the issues of trade imbalance concerned Japan’s trading trade imbalance concerned Japan’s trading partners. partners.

Despite the economic ills that Japan has Despite the economic ills that Japan has suffered since 1989, its exports remain suffered since 1989, its exports remain strong.strong.

Competitors complain that Japan’s success Competitors complain that Japan’s success is largely the result of unfair trade policies. is largely the result of unfair trade policies.

““We Japanese should not We Japanese should not buy the products of the buy the products of the

foreigners!”foreigners!” Most nations have few barriers to trade. Most nations have few barriers to trade.

Japan has many obstacles that make it Japan has many obstacles that make it difficult for foreign companies to sell their difficult for foreign companies to sell their products there.products there.

Above quote demonstrates the attitude of Above quote demonstrates the attitude of Japanese toward imported goods.Japanese toward imported goods.

Under strong pressure in recent years, Under strong pressure in recent years, Japan has made an effort to ease some Japan has made an effort to ease some trade barriers and increase imports. trade barriers and increase imports. However, old attitudes are hard to However, old attitudes are hard to overcome. overcome.

InterdependenceInterdependence Global trade is central to Japan’s prosperity. Global trade is central to Japan’s prosperity. Japan imports most of its energy resources, Japan imports most of its energy resources,

including oil from the Middle East. It also buys including oil from the Middle East. It also buys food from the US, Canada and Australia.food from the US, Canada and Australia.

In exchange, it exports manufactured goods, In exchange, it exports manufactured goods, such as automobiles and electronics.such as automobiles and electronics.

Because of its dependence on worldwide trade, Because of its dependence on worldwide trade, Japan is sensitive to global economic trends.Japan is sensitive to global economic trends.

A slowdown in another part of the world can A slowdown in another part of the world can affect Japan because nations in crisis reduce affect Japan because nations in crisis reduce their spending on imports. their spending on imports.

Japan gets criticized!Japan gets criticized!

As an economic superpower, Japan As an economic superpower, Japan was doing little to help less-was doing little to help less-developed nations.developed nations.

In response to criticism, Japan set In response to criticism, Japan set up programs to help people in up programs to help people in developing nations gain modern developing nations gain modern technology and farming skills. technology and farming skills.

Rebuilding Burnt Rebuilding Burnt Bridges!Bridges!

In the past, most of Japan’s trade In the past, most of Japan’s trade was carried on with Asian nations.was carried on with Asian nations.

After WWII, Japan gradually rebuilt After WWII, Japan gradually rebuilt trade.trade.

They had to overcome the bitterness They had to overcome the bitterness and hostility of countries that had and hostility of countries that had suffered during the Japanese suffered during the Japanese invasion and conquest.invasion and conquest.

Today, Japan is the major trading Today, Japan is the major trading partner of many East Asian and partner of many East Asian and

Southeast Asian nations. Although Southeast Asian nations. Although Japan faces growing competition from Japan faces growing competition from

China, it still holds a dominant China, it still holds a dominant position in the Pacific Rim.position in the Pacific Rim.

ThailanThailandd

MalayMalaysiasia

SingapSingaporeore

IndoneIndonesiasia

PhilippinPhilippineses

SourcSource of e of most most imporimportsts

JapanJapan JapanJapan USUS JapanJapan JapanJapan

DestinatiDestination of on of most most importsimports

USUS SingapSingaporeore

USUS JapanJapan JapanJapan

CHINACHINA During the Cold War, Japan was tied with the During the Cold War, Japan was tied with the

US and did not recognize the People’s US and did not recognize the People’s Republic of China until 1972. Why?Republic of China until 1972. Why?

Today, Japan has many joint economic Today, Japan has many joint economic ventures with China.ventures with China.

It has invested more capital in China than any It has invested more capital in China than any other industrial nation.other industrial nation.

The Japanese see China as a huge untapped The Japanese see China as a huge untapped market.market.

They strongly backed China’s economic They strongly backed China’s economic reforms and supported its entry into the reforms and supported its entry into the World Trade Organization.World Trade Organization.

KOREAKOREA

Japan and South Korea have many trade Japan and South Korea have many trade and other ties.and other ties.

Both worry about North Korea’s missiles Both worry about North Korea’s missiles and nuclear weapons.and nuclear weapons.

However, relations between Japan and S. However, relations between Japan and S. Korea have been strained.Korea have been strained. The two nations are economic rivals.The two nations are economic rivals. Koreans have not forgotten the hardships of Koreans have not forgotten the hardships of

Japanese colonial rule.Japanese colonial rule. Koreans resent the discrimination faced by Koreans resent the discrimination faced by

Koreans who live in Japan.Koreans who live in Japan.

SOUTHEAST ASIASOUTHEAST ASIA Japan has worked to expand tied with SE Japan has worked to expand tied with SE

Asian nations.Asian nations. Despite Japanese investments in the region, Despite Japanese investments in the region,

SE Asian nations distrust Japan.SE Asian nations distrust Japan. They fear that Japan is using its economic They fear that Japan is using its economic

power to dominate the region.power to dominate the region. For example, Japan provided reparation, or For example, Japan provided reparation, or

payments for damages, to nations it payments for damages, to nations it conquered during WWII. conquered during WWII. The payments were not in cash but with Japanese The payments were not in cash but with Japanese

goods. goods. To many SE Asians, Japan seemed to be promoting To many SE Asians, Japan seemed to be promoting

its own industries rather than making up for past its own industries rather than making up for past damages.damages.