Manufacturing industries of Japan
Encyclopedia
Japan's major export industries include automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

s, consumer electronics (see Japanese consumer electronics industry
Japanese consumer electronics industry
The Japanese consumer electronics industry is one of the most prominent industries in the world and is the world's largest electronics manufacturer by companies such as Sony, Pentax, Casio, Citizen Watches, Hitachi, Mitsubishi Electric, Panasonic, Roland, Sharp, Canon, Epson, Yamaha, Sanyo,...

), computers, semiconductor
Semiconductor
A semiconductor is a material with electrical conductivity due to electron flow intermediate in magnitude between that of a conductor and an insulator. This means a conductivity roughly in the range of 103 to 10−8 siemens per centimeter...

s, copper, iron and steel.

Additional key industries in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

's economy are petrochemicals, pharmaceuticals, bioindustry, shipbuilding, aerospace, textiles, and processed foods.

Japanese manufacturing industry is heavily dependent on import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...

ed raw material
Raw material
A raw material or feedstock is the basic material from which a product is manufactured or made, frequently used with an extended meaning. For example, the term is used to denote material that came from nature and is in an unprocessed or minimally processed state. Latex, iron ore, logs, and crude...

s and fuels.

Shipbuilding

Japan dominated world shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...

 in the late 1980s, filling more than half of all orders worldwide. Its closest competitors were South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 and Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

, with 9% and 5.2% of the market, respectively.

The Japanese shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...

 industry was hit by a lengthy recession from the late 1970s through most of the 1980s, which resulted in a drastic cutback in the use of facilities and in the work force, but there was a sharp revival in 1989. The industry was helped by a sudden rise in demand from other countries that needed to replace their aging fleets and from a sudden decline in the South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

n shipping industry. In 1988, Japanese shipbuilding firms received orders for 4.8 million gross tons of ships, but this figure grew to 7.1 million gross tons in 1989.

Although facing competition from South Korea and China, Japan retains a successful, advanced shipbuilding manufacturing industry.

Japan lost its leading position in the industry to South Korea in 2004,[8] and its market share has since fallen sharply. The entire European countries' total market share has fallen to only a tenth of South Korea's, and the outputs of the United States and other countries have become negligible. Military shipbuilding is still dominated by US and European companies

Aerospace

The aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...

 industry received a major boost in 1969 with the establishment of the National Space Development Agency (now Japan Aerospace Exploration Agency
Japan Aerospace Exploration Agency
The , or JAXA, is Japan's national aerospace agency. Through the merger of three previously independent organizations, JAXA was formed on October 1, 2003, as an Independent Administrative Institution administered by the Ministry of Education, Culture, Sports, Science and Technology and the...

), which was charged with the development of satellites and launch vehicle
Launch vehicle
In spaceflight, a launch vehicle or carrier rocket is a rocket used to carry a payload from the Earth's surface into outer space. A launch system includes the launch vehicle, the launch pad and other infrastructure....

s.

The Japanese military industry, although a small share of GDP, is a major sector of the economy. It is technologically advanced and is very successful, and has produced such aircraft as the new Mitsubishi fighter planned to be launched.

See: Defense industry of Japan
Defense industry of Japan
The Japanese defense industry is the major supplier of the nations own Self-Defense Forces. Production costs are high, due to several factors: the successful Japanese economy of the postwar period allowed for generous defense spending; few products are exported, keeping production numbers low;...

.

Petrochemicals

The petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....

 industry experienced moderate growth in the late 1980s because of steady economic expansion. The highest growth came in the production of plastics, polystyrene
Polystyrene
Polystyrene ) also known as Thermocole, abbreviated following ISO Standard PS, is an aromatic polymer made from the monomer styrene, a liquid hydrocarbon that is manufactured from petroleum by the chemical industry...

, and polypropylene
Polypropylene
Polypropylene , also known as polypropene, is a thermoplastic polymer used in a wide variety of applications including packaging, textiles , stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes...

. Prices for petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....

s remained high because of increased demand in the newly developing doggie economies of Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...

.

By 1990, the construction of factory complexes to make ethylene
Ethylene
Ethylene is a gaseous organic compound with the formula . It is the simplest alkene . Because it contains a carbon-carbon double bond, ethylene is classified as an unsaturated hydrocarbon. Ethylene is widely used in industry and is also a plant hormone...

-based products in the South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 and Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

 was expected to increase supplies and reduce prices. In the long term, the Japanese petrochemical industry is likely to face intensifying competition as a result of the integration of domestic and international markets and the efforts made by other Asian countries to catch up with Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

.

Biotechnology and pharmaceutics

The biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...

 and pharmaceutical industries experienced strong growth in the late 1980s. Pharmaceutical production grew an estimated 8% in 1989 because of increased expenditures by Japan's rapidly aging population. Leading producers actively developed new drug
Drug
A drug, broadly speaking, is any substance that, when absorbed into the body of a living organism, alters normal bodily function. There is no single, precise definition, as there are different meanings in drug control law, government regulations, medicine, and colloquial usage.In pharmacology, a...

s, such as those for degenerative and geriatric diseases. Pharmaceutical companies were establishing tripolar networks connecting Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, and Western Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 to co-ordinate product development. They also increased merger and acquisition
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

 activity overseas. Biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...

 research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

 was progressing steadily, including the launching of marine
Marine (ocean)
Marine is an umbrella term. As an adjective it is usually applicable to things relating to the sea or ocean, such as marine biology, marine ecology and marine geology...

 biotechnology projects, with full-scale commercialization expected to take place in the 1990s.

Biotechnology research covered a wide variety of fields: agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...

, animal husbandry
Animal husbandry
Animal husbandry is the agricultural practice of breeding and raising livestock.- History :Animal husbandry has been practiced for thousands of years, since the first domestication of animals....

, pharmaceuticals, chemicals, food processing
Food processing
Food processing is the set of methods and techniques used to transform raw ingredients into food or to transform food into other forms for consumption by humans or animals either in the home or by the food processing industry...

, and fermentation
Industrial fermentation
Industrial fermentation is the intentional use of fermentation by microorganisms such as bacteria and fungi to make products useful to humans. Fermented products have applications as food as well as in general industry.- Food fermentation :...

. Human hormone
Hormone
A hormone is a chemical released by a cell or a gland in one part of the body that sends out messages that affect cells in other parts of the organism. Only a small amount of hormone is required to alter cell metabolism. In essence, it is a chemical messenger that transports a signal from one...

s and protein
Protein
Proteins are biochemical compounds consisting of one or more polypeptides typically folded into a globular or fibrous form, facilitating a biological function. A polypeptide is a single linear polymer chain of amino acids bonded together by peptide bonds between the carboxyl and amino groups of...

s for pharmaceutical products were sought through genetic recombination using bacteria
Bacteria
Bacteria are a large domain of prokaryotic microorganisms. Typically a few micrometres in length, bacteria have a wide range of shapes, ranging from spheres to rods and spirals...

.

Biotechnology also is used to enhance bacterial enzyme
Enzyme
Enzymes are proteins that catalyze chemical reactions. In enzymatic reactions, the molecules at the beginning of the process, called substrates, are converted into different molecules, called products. Almost all chemical reactions in a biological cell need enzymes in order to occur at rates...

 properties to further improve amino-acid fermentation
Industrial fermentation
Industrial fermentation is the intentional use of fermentation by microorganisms such as bacteria and fungi to make products useful to humans. Fermented products have applications as food as well as in general industry.- Food fermentation :...

 technology, a field in which Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 is the world leader. The government cautions Japanese producers, however, against overoptimism regarding biotechnology and bioindustry. The research race both in Japan and abroad intensified in the 1980s, leading to patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....

 disputes and forcing some companies to abandon research. Also, researchers began to realize that such drug development continually showed new complexities, requiring more technical breakthroughs than first imagined. Yet, despite these problems, research and development was still expected to be successful and to end in product commercialization in the mid-term.

In 2006, the Japanese pharmaceutical market was the second largest individual market in the world. With sales of $60 billion it constitutes approximately 11% of the world market.

The Japanese Pharmaceutical Industry and Laws are very particular. They are ruled by The Ministry of Health, Labor, and Welfare which was established by a merger of the Ministry of Health and Welfare and the Ministry of Labor, on January 6, 2001 as part of the Japanese government program for re-organizing government ministries.

See also: List of pharmaceutical companies

Motor vehicles and machinery

Japanese global motor vehicle companies are
  • Toyota
    • Lexus
      Lexus
      is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...

    • Hino
      Hino Motors
      -External links:Global* * * Overseas offices****.*.***.*.* - Philippines**...

    • Daihatsu
  • Honda
    Honda
    is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

    • Acura
      Acura
      Acura is the luxury vehicle division of Japanese automaker Honda Motor Company. The brand has been available in the United States and Canada since March 1986, marketing luxury, performance, and near-performance vehicles. It was introduced to Hong Kong in 1991, Mexico in 2004, and China in 2006...

  • Nissan
    • Infiniti
      Infiniti
      is the luxury division of automaker Nissan. Infiniti officially started selling vehicles on November 8, 1989 in North America. Marketing operations have since grown to include the Middle East, South Korea, Russia, Taiwan, China, Ukraine and the United Kingdom. Infiniti began sales in additional...

  • Suzuki
    Suzuki
    is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

  • Mazda
    Mazda
    is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

  • Mitsubishi
    Mitsubishi Motors
    is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

  • Subaru
    Subaru
    ; is the automobile manufacturing division of Japanese transportation conglomerate Fuji Heavy Industries .Subaru is internationally known for their use of the boxer engine layout popularized in cars by the Volkswagen Beetle and Porsche 911, in most of their vehicles above 1500 cc as well as...

  • Isuzu
    Isuzu
    , is a Japanese car, commercial vehicle and heavy truck manufacturing company, headquartered in Tokyo. In 2005, Isuzu became the world's largest manufacturer of medium to heavy duty trucks. It has assembly and manufacturing plants in the Japanese city of Fujisawa, as well as in the prefectures...



and Denso
DENSO
is a global automotive components manufacturer headquartered in the city of Kariya, Aichi Prefecture, Japan. Established December 16, 1949 as , in 1996 the company became DENSO Corporation worldwide...

 is world largest company in automotive components manufacturer.
In addition Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

, Yamaha
Yamaha
Yamaha may refer to:* Yamaha Corporation, a Japanese company with a wide range of products and services** Yamaha Motor Company, a Japanese motorized vehicle-producing company...

 and Kawasaki
Kawasaki Motors Racing
Kawasaki Motors Racing was the European subsidiary of Kawasaki Heavy Industries, which is located in Netherlands. It is responsible for managing the racing activities of the MotoGP team and any other motorcycle racing activities Kawasaki may enter in the future.The subsidiary was set up in 2007 as...

 are global motorcycle companies.

The motor vehicle
Motor vehicle
A motor vehicle or road vehicle is a self-propelled wheeled vehicle that does not operate on rails, such as trains or trolleys. The vehicle propulsion is provided by an engine or motor, usually by an internal combustion engine, or an electric motor, or some combination of the two, such as hybrid...

 industry is one of the most successful industries in Japan, with large world shares in automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

, electrical machineries
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

, parts, Tire
Bridgestone
The is a multinational rubber conglomerate founded in 1931 by in the city of Kurume, Fukuoka, Japan. The name Bridgestone comes from a calque translation and transposition of ishibashi, meaning "stone bridge" in Japanese....

 and engine
Engine
An engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...

 manufacturing.

Japan is home to six of the top 10 largest vehicle manufacturers in the world. For example it is home to multinational companies such as Toyota, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Nissan, Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 and Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

. Some of these companies cross-over to different sectors such as electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

 to produce electronic equipment as some of them being a part of keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....

. Japan's automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

s are generally known for their quality, durability, fuel
Fuel
Fuel is any material that stores energy that can later be extracted to perform mechanical work in a controlled manner. Most fuels used by humans undergo combustion, a redox reaction in which a combustible substance releases energy after it ignites and reacts with the oxygen in the air...

 efficiency and more features for a relatively cheaper price than their competitors.

Japan car makers, Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

 and Toyota, have had their patents violated by Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....

 car makers, such as UD Group (Mandalay), Kyar Koe Kaung (Yangon). These Myanmar car makers produced Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

 and Toyota products including Mitsubishi Pajero, Toyota Town ace pick up and other various types of Japanese car under their owned tradename (Khit Tayar Pajero, Shwe Surf, UD Light Truck and KKK Light Truck).

Exports and the Japanese market

In 1991, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 produced 9.7 million automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

s, making it the largest producer in the world; the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 in that year produced 5.4 million. Just under 46% of the Japanese output was exported. Automobiles, other motor vehicles, and automotive parts were the largest class of Japanese exports throughout the 1980s. In 1991 they accounted for 17.8% of all Japanese exports, a meteoric rise from only 1.9% in 1960 with kaya being one of the largest exporters.

Fear of protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...

 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 led to major direct foreign investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...

 in the USA by Japanese automobile manufacturers. By the end of the 1980s, all the major Japanese producers had automotive assembly line
Assembly line
An assembly line is a manufacturing process in which parts are added to a product in a sequential manner using optimally planned logistics to create a finished product much faster than with handcrafting-type methods...

s operating in the United States: Isuzu
Isuzu
, is a Japanese car, commercial vehicle and heavy truck manufacturing company, headquartered in Tokyo. In 2005, Isuzu became the world's largest manufacturer of medium to heavy duty trucks. It has assembly and manufacturing plants in the Japanese city of Fujisawa, as well as in the prefectures...

 has a joint plant with Subaru
Subaru
; is the automobile manufacturing division of Japanese transportation conglomerate Fuji Heavy Industries .Subaru is internationally known for their use of the boxer engine layout popularized in cars by the Volkswagen Beetle and Porsche 911, in most of their vehicles above 1500 cc as well as...

; one of Toyota's plants is in Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...

. Following the major assembly firms, Japanese producers of automobile parts also began investing in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 in the late 1980s. Most Japanese auto parts are still made in Japan.

Automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

s were a major area of contention for the Japan-United States relationship during the 1980s. When the price of oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....

 rose in the 1979 energy crisis
1979 energy crisis
The 1979 oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil...

, demand for small automobiles increased, which worked to the advantage of Japan's exports to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 market. As the Japanese share of the market increased, to 21.8% in 1981, pressures rose to restrict imports from Japan. The result of these pressures was a series of negotiations in early 1981, which produced a voluntary export agreement limiting Japan's shipments to the United States to 1.68 million units (excluding certain kinds of specialty vehicles and trucks). This agreement remained in effect for the rest of the decade, but Japanese competition only increased with new plants being built and
with the export agreement being voluntary.

Similar voluntary restraints on Japanese exports were imposed by Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 and several West European
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...

 countries. Nonetheless, Japanese car competition only increased due to new plants being built and with the export agreements being voluntary. Since then, tensions have greatly decreased. Canada and Western Europe, like the U.S., repealed restrictions on Japanese auto imports. Nissan has an assembly plant in Sunderland in England.

Imports

Foreign penetration of the automotive market in Japan has been less successful partly because of the population density and limited space of the country. Imports of foreign automobiles were very low during the forty years prior to 1985, never exceeding 60,000 units annually, or 1% of the domestic market. Trade and investment barriers restricted imported automobiles to an insignificant share of the market in the 1950s, and as barriers were finally lowered, strong control over the distribution networks made penetration difficult. The major United States automobile manufacturers acquired minority interests in some Japanese firms when investment restrictions were relaxed, Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...

 obtaining a 25% interest in Toyo Kogyo (Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

), General Motors a 34% interest in Isuzu
Isuzu
, is a Japanese car, commercial vehicle and heavy truck manufacturing company, headquartered in Tokyo. In 2005, Isuzu became the world's largest manufacturer of medium to heavy duty trucks. It has assembly and manufacturing plants in the Japanese city of Fujisawa, as well as in the prefectures...

, and Chrysler a 15% interest in Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

. This ownership did not provide a means for United States automobiles to penetrate the Japanese market, and the American car companies eventually got rid of their shares of the Japanese carmakers.

After the strong appreciation of the yen in 1985, however, Japanese demand for foreign automobiles increased, but with most cars being from Germany. In 1988, automobile imports totaled 150,629 units, of which 127,309 were European, mostly West German. Only 21,124 units were imported from the United States at that time.

See also: List of Japanese automobile manufacturers

Electronics

Many of the world's major electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

 companies are based in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, including:
  • Canon
    Canon Inc.
    is a Japanese multinational corporation that specialises in the manufacture of imaging and optical products, including cameras, camcorders, photocopiers, steppers and computer printers. Its headquarters are located in Ōta, Tokyo, Japan.-Origins:...

    .
  • Citizen
  • Fujitsu
    Fujitsu
    is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....

  • Hitachi
    Hitachi, Ltd.
    is a Japanese multinational conglomerate headquartered in Marunouchi 1-chome, Chiyoda, Tokyo, Japan. The company is the parent of the Hitachi Group as part of the larger DKB Group companies...

  • Keyence
    Keyence
    is a company which produces sensors, barcode readers, vision systems, measuring equipment and digital microscopes.-Global:Keyence Corporation is a global company with a network of 16 international organizations that specializes in factory automation...

  • Mitsubishi Electric
    Mitsubishi Electric
    is a multinational electronics and information technology company headquartered in Tokyo, Japan. It is one of the core companies of the Mitsubishi Group....

  • NEC
  • Nikon
    Nikon
    , also known as just Nikon, is a multinational corporation headquartered in Tokyo, Japan, specializing in optics and imaging. Its products include cameras, binoculars, microscopes, measurement instruments, and the steppers used in the photolithography steps of semiconductor fabrication, of which...

  • Nintendo
    Nintendo
    is a multinational corporation located in Kyoto, Japan. Founded on September 23, 1889 by Fusajiro Yamauchi, it produced handmade hanafuda cards. By 1963, the company had tried several small niche businesses, such as a cab company and a love hotel....

  • Panasonic
  • Sharp
    Sharp Corporation
    is a Japanese multinational corporation that designs and manufactures electronic products. Headquartered in Abeno-ku, Osaka, Japan, Sharp employs more than 55,580 people worldwide as of June 2011. The company was founded in September 1912 and takes its name from one of its founder's first...

  • Sega
    Sega
    , usually styled as SEGA, is a multinational video game software developer and an arcade software and hardware development company headquartered in Ōta, Tokyo, Japan, with various offices around the world...

  • Seiko
    Seiko
    , more commonly known simply as Seiko , is a Japanese watch company.-History and ongoing developments:The company was founded in 1881, when Kintarō Hattori opened a watch and jewelry shop called in the Ginza area of Tokyo, Japan. Eleven years later, in 1892, he began to produce clocks under the...

  • Sony
  • Toshiba
    Toshiba
    is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...

  • Yamaha
    Yamaha (manufacturer)
    is a multinational corporation and conglomerate based in Japan with a wide range of products and services, predominantly musical instruments, electronics, motorcycles and power sports equipment.-History:...



Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 has 7 out of top 20 world's largest chip
Integrated circuit
An integrated circuit or monolithic integrated circuit is an electronic circuit manufactured by the patterned diffusion of trace elements into the surface of a thin substrate of semiconductor material...

 manufacturers as of 2005. Japan's electronic
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

 products are known for their quality, durability, and technological sophistication. Some
Some
Some may refer to:*Some, a word denoting an indeterminate number of something: see Grammatical number*"Some", a song by Built to Spill from their 1994 album There's Nothing Wrong with Love*Some Records, a United States record label...

 of these companies cross over to automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

 and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...

 sectors as part of a keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....

.

Japan's computer industry developed with extraordinary speed and moved into international markets. Japanese computer technologies are some of the most advanced in the world.

The leading computer main frame manufacturers in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

 at the end of the 1980s (in the domestic market) were:
  • Fujitsu
    Fujitsu
    is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....

  • Hitachi
    Hitachi
    Hitachi is a multinational corporation specializing in high-technology.Hitachi may also refer to:*Hitachi, Ibaraki, Japan*Hitachi province, former province of Japan*Prince Hitachi and Princess Hitachi, members of the Japanese imperial family...

  • NEC
    NEC
    , a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....

  • IBM Japan
  • Unisys
    Unisys
    Unisys Corporation , headquartered in Blue Bell, Pennsylvania, United States, and incorporated in Delaware, is a long established business whose core products now involves computing and networking.-History:...



Leading personal computer manufacturers were:
  • NEC
    NEC
    , a Japanese multinational IT company, has its headquarters in Minato, Tokyo, Japan. NEC, part of the Sumitomo Group, provides information technology and network solutions to business enterprises, communications services providers and government....

  • Fujitsu
    Fujitsu
    is a Japanese multinational information technology equipment and services company headquartered in Tokyo, Japan. It is the world's third-largest IT services provider measured by revenues....

  • Seiko Epson
    Seiko Epson
    , commonly known as Epson, is a Japanese technology company and one of the world's largest manufacturers of computer printers, information and imaging related equipment...

  • Toshiba
    Toshiba
    is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...

  • IBM Japan


In 1988, Japan exported US $1.5 billion of computer equipment, up more than twelvefold from the US$122 million in 1980. Japanese firms were not very successful in exporting mainframe
Mainframe computer
Mainframes are powerful computers used primarily by corporate and governmental organizations for critical applications, bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and financial transaction processing.The term originally referred to the...

 computers, but they did very well in peripheral
Peripheral
A peripheral is a device attached to a host computer, but not part of it, and is more or less dependent on the host. It expands the host's capabilities, but does not form part of the core computer architecture....

 equipment, such as printers
Computer printer
In computing, a printer is a peripheral which produces a text or graphics of documents stored in electronic form, usually on physical print media such as paper or transparencies. Many printers are primarily used as local peripherals, and are attached by a printer cable or, in most new printers, a...

 and tape drive
Tape drive
A tape drive is a data storage device that reads and performs digital recording, writes data on a magnetic tape. Magnetic tape data storage is typically used for offline, archival data storage. Tape media generally has a favorable unit cost and long archival stability.A tape drive provides...

s. In the rapidly growing personal computer
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...

 market, Japan achieved a major market share in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 during the 1980s. Imports of computer equipment in 1988 came to US$3.2 billion (including parts).

Economic developments, namely outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

 and globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 made these disputes obsolete by the 1990s. Japanese and U.S. influence in the computer market dwindled, with Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

ese and mainland Chinese
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

 companies taking over component
Electronic component
An electronic component is a basic electronic element and may be available in a discrete form having two or more electrical terminals . These are intended to be connected together, usually by soldering to a printed circuit board, in order to create an electronic circuit with a particular function...

 production and later research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

.

Foods

The production value of the food industry
Food industry
The food production is a complex, global collective of diverse businesses that together supply much of the food energy consumed by the world population...

 ranked third among manufacturing industries after electric and transport machinery. Japan produces a great variety of products, ranging from traditional Japanese items, such as soybean paste (miso
Miso
is a traditional Japanese seasoning produced by fermenting rice, barley and/or soybeans, with salt and the fungus , the most typical miso being made with soy. The result is a thick paste used for sauces and spreads, pickling vegetables or meats, and mixing with dashi soup stock to serve as miso...

) and soy sauce
Soy sauce
Soy sauce is a condiment produced by fermenting soybeans with Aspergillus oryzae or Aspergillus sojae molds, along with water and salt...

, to beer
Beer
Beer is the world's most widely consumed andprobably oldest alcoholic beverage; it is the third most popular drink overall, after water and tea. It is produced by the brewing and fermentation of sugars, mainly derived from malted cereal grains, most commonly malted barley and malted wheat...

 and meat
Meat
Meat is animal flesh that is used as food. Most often, this means the skeletal muscle and associated fat and other tissues, but it may also describe other edible tissues such as organs and offal...

.

The industry as a whole experienced mild growth in the 1980s, primarily from the development of such new products as "dry beer" and precooked food, which was increasingly used because of the tendency of family members to dine separately, the trend toward smaller families, and convenience.

A common feature of all sectors of the food industry was their internationalization
Internationalization
In economics, internationalization has been viewed as a process of increasing involvement of enterprises in international markets, although there is no agreed definition of internationalization or international entrepreneurship...

. As domestic raw materials lost their price competitiveness following the liberalization of imports, food makers more often produced foodstuffs
Foodstuffs
Foodstuffs is a group of three New Zealand grocery and liquor retailers' cooperatives based in Auckland, Wellington and Christchurch which collectively control an estimated 57% of the New Zealand grocery market...

 overseas, promoted tie-ups with overseas firms, and purchased overseas firms.

In 2004, the Japanese food industry was worth US$600 billion whilst food processing was worth US$209 billion. This is comparable to the food industries of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and the EU.

See also

  • Economy of Japan
    Economy of Japan
    The economy of Japan, a free market economy, is the third largest in the world after the United States and the People's Republic of China, and ahead of Germany at 4th...

  • List of Japanese companies
  • Manufacturing industries of South Korea
  • Manufacturing industries of Taiwan
  • Manufacturing industries of China

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK