Japan, one of the most industrialized nations in the world, is a small island located in Eastern Asia. Surrounded by the Pacific Ocean, Sea of Japan, China, North Korea, South Korea and Russia, Japan consists of roughly 6,800 islands, many of them mountainous and volcanic. Of these islands, only four of them make up the majority of Japan’s land mass (97%); Honshu, Hokkaido, Kyushu and Shikoku. Japan’s landmass totals about 364,000 square km, in size comparison to the United States, it is somewhat smaller than California. Natural resources are scarce and consist of a few minerals and an abundance of fish. Japan’s capital city is Tokyo, the most populated and largest metropolitan area in the world. The greater Tokyo area has a population of over 35 million people and was recently named the world’s most expensive city to live in. Japan is a highly developed country that takes great pride in its high standards of living. Japan, the land of the rising sun, has experienced a devastating history of turmoil (including two nuclear bomb explosions), but nonetheless, the nation has redeveloped itself into one of the most important and influential markets in the world.

Social Environment

Japan is the 10th most populated country in the world and has a population of about 127 million people (2% of the world’s population). Since 2005, Japan’s population has been facing a negative growth rate – currently estimated to be -0.242%. This decline in growth is mainly caused by a falling birth rate. While the death rate has also been declining, the birth rate has been declining faster and pulling the nation toward the problem of an ageing population. In order to mitigate the consequences a shrinking population has on economic growth, the government implemented a policy called the Angel Plan. Under this act, citizens are encouraged to have children through various benefits such as child allowances and child care programs. Even though the birth rate is falling, the population has not declined at the same margin due to immigration (which is currently about 15% of the population). About 22% of the population is in the age group of 65 and above. Since deaths are outnumbering births, this rate is estimated to increase to 28% by 2025. Japan’s population has a life expectancy of 82 years, which is one of the highest in the world.

Japan’s population is fairly homogenous, 98.5% are Japanese, 0.5% are Korean, 0.4% are Chinese, and 0.6% are from other ethnicities. The major religions practiced are Shintoism (83.9) and Buddhims (71.4%), where many people belong to both. The Japanese educational system is highly advanced and is considered on par with the western world. Since 2005, Japan has been achieving a 100% literacy rate and one of the highest university enrolment rates. Education is free to every citizen until the age of 15 (primary education). After secondary education (age 18), students either start a working career or attend college. Japan also has one of the best healthcare systems in the world. 7% of Japan’s GPD gets spend on a national state of the art healthcare system. The government enforces a mandatory universal health insurance system, in which every citizen is offered a basic benefits package. 80% of the healthcare industry consists of privately run hospitals while only 20% are state-run/publicly owned.