Exporting from the World Trade Organization Statistics Database, Japan’s

Exporting

Japan is the 4th largest export
economy in the world. Japan’s number one export is motor cars, automotive parts
and accessories, electronic integrated circuits then machinery used to make
semiconductors. Japan shipped US$645.2 billion worth of goods all around the
world in 2016. These are the top 10 products that was exported in 2016. Vehicles(US$141.9 billion), Machinery including computers($124 billion),
Electrical machinery, equipment($98.3 billion), Optical, technical, medical
apparatus($35.9 billion), Iron and steel($24.5 billion), Plastics and plastic
articles($23.4 billion), Organic chemical($15.9 billion), Gems and precious
metals($14 billion), Ships and boats($12.8 billion), Rubber and rubber
articles($9.8 billion).

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Source: Adapted from WTO Statistic Database

Based on statistics
from the World Trade Organization Statistics Database, Japan’s total Gross Domestic
Product amounted to $4.938 trillion in 2016. Therefore, exports are about 13.1%
of total Japanese economic output. It is also to be noted that Japan has high
net exports in the international trade of automobiles. This indicates that Japan
has high competitive advantage under automobile category. But there are also
other exports from Japan such as food, clothing and accessories, wood,
pharmaceutical and mineral fuels. But only some of these goods generate good
cash flow while goods like mineral fuels are still down. These indicates Japan’s
competitive disadvantage in the fuel market but it has an opportunity to
improve its current position in the global economy.

Japan’s
export increased from 9.3 percent in 2016 to JPY 7,302 billion in December 2017
reaching the highest amount since September 2008. Table 4.1 explains the cash
inflows from exporting mainly for semiconductor machinery and power generating
machines. Japan’s main partners are China, Taiwan, US, Australia and EU.

                                                             Figure 4.1

 

 

Importing

 

Japan’s biggest goods exporter is
Australia. The importing amount is nearly AUS$ 37.98 billion (US$ 30.78
billion). Japan’s main imports include mineral fuels, electrical machinery,
pharmaceuticals and so on. From the information extracted these are the top 10
imports of Japan. Mineral fuels including oil (US$110.7 billion), Electrical
machinery and equipment  ($89.9 billion),
Machinery including computers ($59.4 billion), Pharmaceuticals ($24.4 billion),
Optical, technical and medical apparatus ($24.2 billion), Vehicles ($20.9
billion), Ores, slag and ash ($17.3 billion), Organic chemicals ($14.4
billion), Plastics and plastic articles ($13.9 billion), Clothing and accessories
($13.4 billion).

 

From figure 4.2 we can see that imports
to Japan have increased 14.9% from 2016 to JPY 6,943 billion at the end of year
2017. Imports have increased mostly for mineral fuels which consists of crude
oil, petroleum gases and coal (27.6 %), electrical machinery which consists
phone system device, integrated circuits, insulated wire and solar power diodes
(18.8 %), optical instrument (11.9 %), clothing and accessories (4.4 %) and
pharmaceutical includes medicines, blood fractions and sutures (4 %). Japanese
imports represents about 3.7% of total global imports.  Among major trading partners, import increases
from China, South Korea, Taiwan, Australia, US, Germany and Saudi Arabia.

 

                                                           
Figure 4.2

 

 

 

 

Merchandise

 

Source: World Trade Organization, 2016

                                                          
Figure 4.3

 

As we can see from figure 4.3, that
Japan is the fourth country being a merchandise exporter and fifth as
merchandise importer. Its world share in exporting is 4.0 % and 3.7 % in importing.
From this it is proved that Japan’s trade is balance. This is because even
though its imports are quite high mainly because of high mineral fuels
purchases, its automobile and electrical machineries exports override it. That
is why Japan has balance of trade which is trade surplus.