The rise to the top did not occur without a large struggle as many problems did occur after the Second World War left Japan economically devastated. Japan's journey has left them at the present with recession conditions. Following World War Two, Japan's economy was absolutely devastated. From 1937 to its defeat in 1945 Japan poured all of its strength into the war. The industrial sector was diverted into a swollen military production sector. The strongest and swiftest workers were placed in the military, and quite often sent to die on the front lines of the war. The citizens who stayed in Japan often worked in military factories, and faced the constant threat of air raids.

The whole society is based on being the best at what ever it may be. Although recently the new younger generation is shifting towards a conserver society, less work and more play is the credo for this new breed of human beings. Married couples as well as single, free thinking individuals are no longer willing to let their jobs consume their lives, they take two day weekends and escape to quite places like a beach. The Americans complain about declines in their steel industries but few Americans believe that it is a problem to import CD players and TV's. The United States government does not have any form of a plan to create a domestic CD player or anything of the sort. This is where the Japanese are different from the rest of the world. The key is that within the country of Japan companies, and corporations competitive with each other or not they stick together to ensure the success of their country; the United States on the other hand does not compete with the rest of the world as one for it is the companies and corporations that compete individually representing the United States. As well, the Japanese capacity to produce high quality products is very emphasized in the world market. This is what permits them to ask themselves why import if we can produce a higher quantity with a better quality for a cheaper price?

Once the war was over there was not a need for the military industries that were created and a large number of four million citizens became unemployed.

After nearly four years of expansion from1987 to 1991, the Japanese economy went through a recession starting in 1991 and lasting for thirty-two months. This recession ended in March of 1993. The recession of 1991 to 1993 was the second largest recession in the postwar period. The government made efforts to reactivate the economy and introduced seven fiscal stimulus packages in four years from 1992 to 1995. The Bank of Japan cut the bank rate to 0.5 percent in 1995 and has since kept it at this record low. The government undertook a major tax reform in 1994 and cut income taxes through the tax schedule and through increases in standard personal and employment income deductions. Therefore by decreasing revenues the government attempted to promote spending. As a result the national debt increased by about six percent of the Gross Domestic Product. Another reason for this increase in debt was that the private sector was unresponsive to the stimulus. One of the reasons for sluggish business investment within Japan was due to the unstable nature of the economy and a thus a flight of capital to the United States and other stable markets. Manufacturing industry investments increased during the 1995- 1996 period, which was a sign to economists that the economy was back on the path of self- sustaining expansion.

Canada also plays the role of supplier of raw materials to Japan. Canada sells natural resources to a quickly expanding country with ever expanding needs for raw materials with which to fuel their thriving industrial sector. Canada's exports to Japan include lumber, wheat, corn, and products that are land intensive. Arable land in Japan is scarce and extremely expensive and fifty-six percent of the forest area is privately owned. The land that is used is very commonly on steep hills, where decades of reworking the soil have left it in stages of plateaus on which rice patties and farmland are held. The arable land is divided into many small farms averaging three point five acres in size. Most of the land is over used since the farmers overwork it trying to get as much out of as possible. Thus, Japan must rely on outside sources of agriculture to supply its people

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Approximate Word count = 2465
Approximate Pages = 10 (250 words per page double spaced)