Generally, and in the past, Globalisation has aided Japan in achieving its rapid economic growth, and poses as the greatest support in the return of the Japanese economy’s strength. Real economic growth peaked in the 1960s, with an average of 10%, 5% in the ’70s and 4% in the ’80s. Despite this, Globalisation has also negatively affected Japan’s economic growth. Growth slowed in the 1990s due to the collapse of the “bubble economy” and consequences arising from overinvestment and contractionary domestic policies proposed to wring speculative excesses for the stock and real estate markets. Japan has suffered deflation of 0.3%, rising unemployment of 5.5%, reduced GDP (0.4% in 2001 and 0.2% during 2002) and as of 17/11/08, Japan was officially declared in a recession, with a fall of 0.4% on an annualized basis, marking the first time the economy has contracted for two successive quarters in 7 years (Japan Ministry of Economy). Hence, the Japanese economy has seesawed between stagnancy and anemic growth in the past 10 years, and we are yet to see the full effects of the World Economic Slowdown, catalyzed by Globalisation, on Japan. However, the Japanese government recently pledged $107billion of spending measures into the ailing economy to stimulate it.
The impact of globalization on Japan’s trade flows and consumers have had a positive effect. The Japanese Government has been promoting trade for decades, as it saw the opportunity for economic growth and development. It provides detailed surveys, services, and policies to help businesses trade and thereby promotes it. Japan has relied on world trade and international business and has its international competitiveness to thank for its success as an economy. In addition, Globalisation has seen a shift from agricultural production in post WW2 to manufactured goods.