Exporting Japan is the 4th largest exporteconomy in the world.
Japan’s number one export is motor cars, automotive partsand accessories, electronic integrated circuits then machinery used to makesemiconductors. Japan shipped US$645.2 billion worth of goods all around theworld in 2016.
These are the top 10 products that was exported in 2016. Vehicles(US$141.9 billion), Machinery including computers($124 billion),Electrical machinery, equipment($98.3 billion), Optical, technical, medicalapparatus($35.9 billion), Iron and steel($24.5 billion), Plastics and plasticarticles($23.4 billion), Organic chemical($15.
9 billion), Gems and preciousmetals($14 billion), Ships and boats($12.8 billion), Rubber and rubberarticles($9.8 billion).
Source: Adapted from WTO Statistic DatabaseBased on statisticsfrom the World Trade Organization Statistics Database, Japan’s total Gross DomesticProduct amounted to $4.938 trillion in 2016. Therefore, exports are about 13.
1%of total Japanese economic output. It is also to be noted that Japan has highnet exports in the international trade of automobiles. This indicates that Japanhas high competitive advantage under automobile category. But there are alsoother exports from Japan such as food, clothing and accessories, wood,pharmaceutical and mineral fuels.
But only some of these goods generate goodcash flow while goods like mineral fuels are still down. These indicates Japan’scompetitive disadvantage in the fuel market but it has an opportunity toimprove its current position in the global economy. Japan’sexport increased from 9.3 percent in 2016 to JPY 7,302 billion in December 2017reaching the highest amount since September 2008. Table 4.1 explains the cashinflows from exporting mainly for semiconductor machinery and power generatingmachines. Japan’s main partners are China, Taiwan, US, Australia and EU.
Figure 4.1 Importing Japan’s biggest goods exporter isAustralia. The importing amount is nearly AUS$ 37.98 billion (US$ 30.78billion). Japan’s main imports include mineral fuels, electrical machinery,pharmaceuticals and so on.
From the information extracted these are the top 10imports of Japan. Mineral fuels including oil (US$110.7 billion), Electricalmachinery and equipment ($89.9 billion),Machinery including computers ($59.4 billion), Pharmaceuticals ($24.4 billion),Optical, technical and medical apparatus ($24.2 billion), Vehicles ($20.
9billion), Ores, slag and ash ($17.3 billion), Organic chemicals ($14.4billion), Plastics and plastic articles ($13.
9 billion), Clothing and accessories($13.4 billion). From figure 4.2 we can see that importsto Japan have increased 14.9% from 2016 to JPY 6,943 billion at the end of year2017. Imports have increased mostly for mineral fuels which consists of crudeoil, petroleum gases and coal (27.
6 %), electrical machinery which consistsphone system device, integrated circuits, insulated wire and solar power diodes(18.8 %), optical instrument (11.9 %), clothing and accessories (4.4 %) andpharmaceutical includes medicines, blood fractions and sutures (4 %). Japaneseimports represents about 3.7% of total global imports.
Among major trading partners, import increasesfrom China, South Korea, Taiwan, Australia, US, Germany and Saudi Arabia. Figure 4.2 Merchandise Source: World Trade Organization, 2016 Figure 4.
3 As we can see from figure 4.3, thatJapan is the fourth country being a merchandise exporter and fifth asmerchandise importer. Its world share in exporting is 4.0 % and 3.7 % in importing.
From this it is proved that Japan’s trade is balance. This is because eventhough its imports are quite high mainly because of high mineral fuelspurchases, its automobile and electrical machineries exports override it. Thatis why Japan has balance of trade which is trade surplus.