Japanese Trading Partners & SWOT

 

Japan is known to be quite the strong trade partner located in Southeast Asia. Many would consider their trade embargos as part of their country’s economic livelihood. Their number one trade partner as of 2019, is the United States of America. The USA had 19.9% of their exports, with a revenue of USD $140.4 billion. The second country is China, at 19.1% and a revenue of USD $134.7 billion. South Korea is the third trading partner, at 6.6% and a revenue of $46.3 billion.

A strength of trading with Japan is that it is the third largest trading economy, making them valuable to import and export to. As of 2019, there have been trade agreements with the United States to lower tariffs, therefore making it cheaper to import and export products between the two countries. Another one of their strengths, is according to the World Bank, they are ranked #29 out of #190 in doing business with.

A weakness of trading with Japan is the potential culture shock- as they have very specific and traditional management styles and it could become a turn off if they don’t manage to be more open-minded. Along with this, is their aging community. As the Japanese age they are less likely to want to adapt to newness. Another weakness is that it does depend heavily on their  exports, and if other countries are not placing these said orders, it has the potential to overturn their economy.

An opportunity of trading with Japan is that they have the potential to produce stronger relationships, if they step out of their “normal” in order to understand different cultures and what they have to offer.

A threat of trading with Japan is the quick turnover rate for other Asian countries, such as China. Japan will need to be able to figure out a way to overtake them as the top exporter.  Another threat is their debt levels, as their demographics are not changing at the desired rate (Santander Trade, 2020). Another threat is their aging population, they will soon be receiving government help, and will not be paying taxes. Along with this, many citizens are not having children which decreases the future taxpayers

 

International retailing Proposal