Export Import in Japan

The Japanese economy is the second largest economy in world based on nominal GDP following the United States and is the third largest in terms of Purchasing Power Parity. The Tokyo stock exchange is also the second largest in the world. These facts should give interested traders an idea of the sheer scale at which they will be working. It is a small nation that has an economy so old and advanced that it has the capacity to take over as the world leader. Thus when you are dealing with the Japanese market, you have to understand that you are dealing with people who have been at it for over one and a half centuries now.

The Japanese economy is held in place several major sectors that together contribute to keep the economy growing at its current pace. It focuses on the manufacturing and the service sectors most of all, with the service sector being the largest employer and contributor. The main advances in technology that benefit the entire world often comes from Japan. It is one of the most technologically advanced countries in world. Its main export consists of steel, non-ferrous metals, automobiles, automobile parts, chemicals, electronic items, processed food and consumer electronic items.

From such a large list it is anybody's guess that this is country where there is a lot of scope for business if you can get into the market successfully. Since it has a large population and a relatively low unemployment (at about 4%), it does not have cheap labor. In fact, according to some indexes Japanese workers are paid the highest per hour wage in the world. Thus if you are planning to start a business in the country you have to be aware of situations that will influence your revenues.

Japan is a lucrative country for exporters because of the high levels of existing export activity. Japanese items have a worldwide demand and hence they would be easy to sell once you have the right to sell them. You have to find relatively unexplored companies and niches within the country to start off with something that does not have too much competition. This can prove to be quite a difficult task to accomplish. For exporters, it is advisable that they carefully survey the market while trying to match productions with their existing expertise. Then once the match has been made, they can go into negotiations.

Thus for importers there is a lot of scope in the primary items. These are items that Japan is unable to produce due to the lack of natural resources and space. Importers can profit greatly from the import of raw materials to the country. There's also a good demand for food items that need to be imported to the country. The iron and steel industry also creates the demand for mining equipment. Thus, with careful market analysis, a good import/export business can be established within Japan.

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