Abenomics and Active Pacifism: How Abe's Age Influenced the International Business

Introduction

With a population of 127 million and measured on a Purchasing Power Parity (PPP) which adjusts for price differences, Japan in 2015 stood as the fourth-largest economy in the world after China (which surpassed Japan in 2001) and India which eclipsed Japan in 2012 (CIA Factbook, 2016). The Japanese economy remains one of the most solid and developed in the world. The Shinzo Abe government has promoted a growth policy aimed at bringing the country out of a long period of economic stagnation. Although there are still different tariff and non-tariff barriers-to-entry that make Japan an atypical protectionist country, the local legal system does not provide restrictive or discriminatory law against foreign entrepreneurs except for a few sectors (e.g., agriculture, leather, and mining sectors strategic for national security). A very high number of non-written laws governing trade relationship ensures the high solvency of loans, offering prospects for long-term growth. The gradual relocation of activities to trans-border promotes policies that are intended to boost Foreign Direct Investment (FDI), allowing domestic growth for the Tohoku reconstruction. The “Special Reconstruction Areas” provide tax breaks and streamline bureaucracy for companies which can count on the rest of the national territory on an excellent infrastructure network and efficient services and highly qualified local staff.