Outline of each chapter of the report
Chapter 1 Japan’s “current account balance”: robust trade surplus expansion set to continue
The expansion of Japan’s “trade surplus,” which has been hidden in the shadow of surging oil prices,
has been a source of real strength for Japanese companies and the economy, and exports not only ofcompleted products, but also of materials are increasing. Following the active expansion ofJapanese companies overseas, an upward trend of the “income surpluses” has been witnessed inaddition to manufacturing-related trade surpluses, and thanks to the increase of income fromtourism and patent revenue, “service income deficits” are steadily declining. For the foreseeable
future, it is expected that the accumulative trend in the current account surplus will definitelycontinue.
Chapter 2 Importance of regional strategy and Asia
Japanese companies have expanded their businesses in East Asia through an effective combinationof production network development in the region, coupled with the dynamism of the region and thetechnology, management know-how, and business models that Japanese companies possess. EastAsia has seen progress of so-called “de facto” economic integration based on the region’sproduction networks, and now a stage has been reached where further moves are to be madetowards “de jure” economic integration. These structural changes form the base for free-trade
agreements (FTA) and economic partnership agreements (EPA) that are being promoted by theJapanese government.
Chapter 3 Addressing serious issues of resources, energy, and environment
In recent years, issues pertaining to natural resources, energy, and the environment have emerged as
significant factors for concern. However, Japan has the capacity and ability to lead the world in
utilization of energy conservation and environment–friendly technologies that it has developed overthe course of many years and this can be expected to lead to improvement in Japan’s strength andcompetitiveness.
Chapter 4 Toward enhanced competitiveness for Japanese companies
Analysis and discussion on Japan’s current situation and role of government policy focused on labor
input, capital input, and total factor production that are the three main factors of economic growth.
Although there are many challenges, in the midterm, the driving power will come from theproduction and logistics networks of East Asia, from which it will be possible to create a vision for
the Japanese economy brimming with vitality. Japan will move toward a transformation from being
a conventional “foreign trade country” largely dependent on imports of materials and exports ofgoods, to a “new foreign trade country” built upon international investment and the mutual
exchange of human resources, goods, capital, and information.
Chapter 5 Conclusion and recommendations
In the conclusion of this special research, it is asserted that if Japanese companies and the Japanese
government engage diligently and firmly in the activities that are required of them, then Japanesecompanies will be considerably strengthened and Japan will be able to attain the goal ofestablishing itself as a new foreign trade country. The report sets out recommendations towards therealization of a “new foreign trade country” for three parties: “for trading companies,” “forJapanese companies,” and “for the Japanese government.”(Full text is only available in Japanese)
http://www.jftc.or.jp/shosha/publish/2008_01_foreign.html