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Part I Introduction Japan is an island country poorly endowed with natural resources and supporting a population of over 120 million in a relatively small area Yet despite these limiting conditions and the devastation of its manufacturing base during World War II Japan has managed not only to rebuild its economy but to become one of the leading industrial nations in the world The economy of Japan is a thriving complex of industry commerce finance agriculture and all the other elements of a modern economic structure The nations economy is an advanced stage of industrialization served by a massive flow of information and highly developed transportation network Now the Japanese economy is the second large market economy in the world Japan accounts for approximately two-thirds of the total GDP of Asia and therefore has played a major role in Asia economy Japan is the biggest investor in Asia countries and a crucial financier of world financial markets Its economic health is important to the overall global economy especial in Asia Pacific Business Region Since Japanese bubble economy collapsed in 1991s Japan has grown poor economic performance for several years 1 Moreover Asian financial crisis in 1997 has affected Japanese economy recovery but Japan still holds the key to successful economic recovery of the APBR Part II Multiple Explanation of Japans Economic Success Postwar Japans extraordinary economic achievements during the post-world war II period inspired awe throughout the world In the course of three decades Japan transformed itself from a war-devastated country whose industrial recovery centered on the production of cheap gadget and light consumer goods into an affluent and technologically sophisticated global industrial leader refer to Appendix 1 In trade Japanese export successes have contributed to expanding surpluses in the countrys international accounts since the 1970s These huge surpluses have been invested abroad creating a huge stock of foreign assets for Japan By the mid-1980s Japan had risen to prominence
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