Economy: Its Definition & Types, and System

By Tara Shwan

An economy is a system of organization and institution that either facilitate or play a role in the production and distribution of goods and services in the society.

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The Economy of Japan

November 27, 2016

The Economy of Japan

The economy of Japan is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity. And is the world's second largest developed economy according to IMF.

Japan is the world's third largest automobile manufacturing country. It has the largest electronics goods industry, and is often ranked among the world's most innovative countries. Manufacturing in Japan today now focuses primarily on high-tech and precision goods, such as optical instruments, hybrid vehicles, and robotics.

Japan is the world's largest creditor nation. Japan generally runs an annual trade surplus and has a considerable net international investment surplus.54 of the Fortune Global 500 companies are based in Japan as of 2015

Population: the current population of Japan is 126,323,715

Currency: Japanese yen (JPY)
Trade organizations: APEC, WTO, OECD, G-20, G8 and others
GDP: 4.73 trillion (nominal; 2016)
Agriculture: 1.2%, industry: 27.5%, services: 71.4%
Labour force: 65.93 million
Labour force by occupation
agriculture: 3.9%, industry: 26.2%, services: 69.8%

Unemployment: 3.4% (2015)

Main industries:

Motor vehicle
Electronic equipment
Machine tools
Steel and nonferrous metals
Processed foods

Export goods: Motor vehicles 13.6%; semiconductors 6.2%; iron and steel products 5.5%; auto parts 4.6%; plastic materials 3.5%; power generating machinery 3.5%.

Main export partners

United States 20.2%
China 17.5%
South Korea 7.1%
Hong Kong 5.6%
Thailand 4.5% (2015)

Imports: $766.6 billion (2013)

Import goods: Petroleum 15.5%; liquid natural gas 5.7%; clothing 3.9%; semiconductors 3.5%; coal 3.5%; audio and visual apparatus 2.7%

Main import partners:

China 24.8%
United States 10.5%
Australia 5.4%
South Korea 4.1% (2015)

(Revenues): $1.739 trillion (2013), Expenses: $2.149 trillion (2013)
Main data source: CIA World Fact Book