Japan and the World Chapter 19, sections 2-3

Activating 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 for the trade imbalance? Why do many nations blame Japan for the trade imbalance?

“America ni mo Makudonaruda ga aru” “Even in America, they have McDonald’s!” “Even in America, they have McDonald’s!” The Japanese have absorbed foods and styles from many other nations. The Japanese have absorbed foods and styles from many other nations. The names of many Japanese manufactures – for example, Sony and Toyota – are world famous. The names of many Japanese manufactures – for example, Sony and Toyota – are world famous.

Security and Defense In reaction to WWII, the Japanese embraced a policy of pacifism, or opposition to the use of force under any circumstances. In reaction to WWII, the Japanese embraced a policy of pacifism, or opposition to the use of force under any circumstances. Japan’s 1947 constitution renounced war and barred the government from maintaining a military force. Japan’s 1947 constitution renounced war and barred the government from maintaining a military force. For protection, Japan allied itself with the US. During the Cold War, the US urged Japan to build its own defensive forces. Japan’s economy had recovered and Americans felt that Japan should share the cost of protection. At first, Japan resisted the pressure to rearm. In time, it did set up a Self-Defense Force.

Continued Pacifism … Japan bans taking part in any overseas military action. Japan bans taking part in any overseas military action. During the 1990 Persian Gulf War, the US set up a multinational force to oppose Iraq’s invasion of Kuwait. During the 1990 Persian Gulf War, the US set up a multinational force to oppose Iraq’s invasion of Kuwait. When asked to join the alliance, Japan sent money, but no troops. When asked to join the alliance, Japan sent money, but no troops.

After the suicide hijackings in the US, the Japanese began to worry about their own security from acts of international terrorism. After the suicide hijackings in the US, the Japanese began to worry about their own security from acts of international terrorism. The Japanese Diet passed new laws that allowed some military cooperation with other nations. The Japanese Diet passed new laws that allowed some military cooperation with other nations. They let Japan’s Self- Defense Forces take a limited, non-fighting role in the US-led war on terrorism.

Japan and the Global Economy 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-Oh Japan was hit by an economic recession in Japan was hit by an economic recession in Banks were faced with bad debt, companies went bankrupt and unemployment rose Banks were faced with bad debt, companies went bankrupt and unemployment rose Japan’s government seemed powerless to end the recession.

The Trade Imbalance The trade imbalance occurred because Japan exports more goods to those nations than it imports from them. The trade imbalance occurred because Japan exports more goods to those nations than it imports from them. During the 1980s and 1990s, the issues of trade imbalance concerned Japan’s trading partners. During the 1980s and 1990s, the issues of trade imbalance concerned Japan’s trading partners. Despite the economic ills that Japan has suffered since 1989, its exports remain strong. Despite the economic ills that Japan has suffered since 1989, its exports remain strong. Competitors complain that Japan’s success is largely the result of unfair trade policies. Competitors complain that Japan’s success is largely the result of unfair trade policies.

“We Japanese should not buy the products of the foreigners!” Most nations have few barriers to trade. Japan has many obstacles that make it difficult for foreign companies to sell their products there. Most nations have few barriers to trade. Japan has many obstacles that make it difficult for foreign companies to sell their products there. Above quote demonstrates the attitude of Japanese toward imported goods. Above quote demonstrates the attitude of Japanese toward imported goods. Under strong pressure in recent years, Japan has made an effort to ease some trade barriers and increase imports. However, old attitudes are hard to overcome. Under strong pressure in recent years, Japan has made an effort to ease some trade barriers and increase imports. However, old attitudes are hard to overcome.

Interdependence Global trade is central to Japan’s prosperity. Global trade is central to Japan’s prosperity. Japan imports most of its energy resources, including oil from the Middle East. It also buys food from the US, Canada and Australia. Japan imports most of its energy resources, including oil from the Middle East. It also buys food from the US, Canada and Australia. In exchange, it exports manufactured goods, such as automobiles and electronics. In exchange, it exports manufactured goods, such as automobiles and electronics. Because of its dependence on worldwide trade, Japan is sensitive to global economic trends. Because of its dependence on worldwide trade, Japan is sensitive to global economic trends. A slowdown in another part of the world can affect Japan because nations in crisis reduce their spending on imports. A slowdown in another part of the world can affect Japan because nations in crisis reduce their spending on imports.

Japan gets criticized! As an economic superpower, Japan was doing little to help less-developed nations. As an economic superpower, Japan was doing little to help less-developed nations. In response to criticism, Japan set up programs to help people in developing nations gain modern technology and farming skills. In response to criticism, Japan set up programs to help people in developing nations gain modern technology and farming skills.

Rebuilding Burnt Bridges! In the past, most of Japan’s trade was carried on with Asian nations. In the past, most of Japan’s trade was carried on with Asian nations. After WWII, Japan gradually rebuilt trade. After WWII, Japan gradually rebuilt trade. They had to overcome the bitterness and hostility of countries that had suffered during the Japanese invasion and conquest. They had to overcome the bitterness and hostility of countries that had suffered during the Japanese invasion and conquest.

Today, Japan is the major trading partner of many East Asian and Southeast Asian nations. Although Japan faces growing competition from China, it still holds a dominant position in the Pacific Rim. ThailandMalaysiaSingaporeIndonesiaPhilippines Source of most imports JapanJapanUSJapanJapan Destination of most imports USSingaporeUSJapanJapan

CHINA During the Cold War, Japan was tied with the US and did not recognize the People’s Republic of China until Why? During the Cold War, Japan was tied with the US and did not recognize the People’s Republic of China until Why? Today, Japan has many joint economic ventures with China. Today, Japan has many joint economic ventures with China. It has invested more capital in China than any other industrial nation. It has invested more capital in China than any other industrial nation. The Japanese see China as a huge untapped market. The Japanese see China as a huge untapped market. They strongly backed China’s economic reforms and supported its entry into the World Trade Organization. They strongly backed China’s economic reforms and supported its entry into the World Trade Organization.

KOREA Japan and South Korea have many trade and other ties. Japan and South Korea have many trade and other ties. Both worry about North Korea’s missiles and nuclear weapons. Both worry about North Korea’s missiles and nuclear weapons. However, relations between Japan and S. Korea have been strained. However, relations between Japan and S. Korea have been strained. The two nations are economic rivals. The two nations are economic rivals. Koreans have not forgotten the hardships of Japanese colonial rule. Koreans have not forgotten the hardships of Japanese colonial rule. Koreans resent the discrimination faced by Koreans who live in Japan. Koreans resent the discrimination faced by Koreans who live in Japan.

SOUTHEAST ASIA Japan has worked to expand tied with SE Asian nations. Japan has worked to expand tied with SE Asian nations. Despite Japanese investments in the region, SE Asian nations distrust Japan. Despite Japanese investments in the region, SE Asian nations distrust Japan. They fear that Japan is using its economic power to dominate the region. They fear that Japan is using its economic power to dominate the region. For example, Japan provided reparation, or payments for damages, to nations it conquered during WWII. For example, Japan provided reparation, or payments for damages, to nations it conquered during WWII. The payments were not in cash but with Japanese goods. The payments were not in cash but with Japanese goods. To many SE Asians, Japan seemed to be promoting its own industries rather than making up for past damages. To many SE Asians, Japan seemed to be promoting its own industries rather than making up for past damages.