2.1. COUNTRY OF JAPAN
Japan is an island nation in East Asia. Located in the Pacific Ocean, it borders China, North Korea, South Korea, Russia, Taiwan, the Sea of Japan, the Sea of Okhotsk, and the East China Sea. It is an archipelago of 6,852 islands, most of which are mountainous and many are volcanic. The government system is a parliamentary government with a constitutional monarchy. The chief of state is the Emperor and the head of government is the Prime Minister. Japan has a market economy in which the prices of goods and services are determined in a free price system. Japan is a member of the Asian Pacific Economic Cooperation (APEC).
Japan's main export goods are cars, electronic devices and computers. Most important trade partners are China and the USA, followed by South Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany. Japan has a surplus in its export or import balance. The most important import goods are raw materials such as oil, foodstuffs and wood. The industries of Japan are manufacturing, construction, distribution, real estate, services, and communication are Japan's major industries today. Agriculture makes up only about two percent of the GNP. Most important agricultural product is rice. Resources of raw materials are very limited and the mining industry rather small. Japan's service sector accounts for about three-quarters of its total economic output. Banking, insurance, real estate, retailing, transportation, and telecommunications are all major industries such as Mitsubishi UFJ, Mizuho, NTT, TEPCO, Nomura, Mitsubishi Estate, Tokio Marine, Mitsui Sumitomo, JR East, Seven & I, and Japan Airlines counting as one of the largest companies in the world.
2. CURRENT ACCOUNT
Exports decreased to 65.5 trillion yen in 2011 from 67.4 trillion yen in 2010 mainly due to the effects of the...