What type of economic system does Japan have?


Quick Answer

Japan has an industrialized global free market economy. A free market economy is a competitive economic system in which businesses compete with each other for profit and the prices of goods and services are based on supply and demand. Japan's economic system is very similar to that of the United States.

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What type of economic system does Japan have?
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Full Answer

In 2012, Japan's economy was the third largest in the world. Only the United States and China had larger economies. Japan was one of the first Asian countries to industrialize in the late 19th century alongside Western counterparts. In fact, Japan recruited thousands of Westerners to move to Japan to help teach Japanese workers about Western technology as well as educate them in the subjects of math and science. The success of this endeavor led to the elevation of education in Japanese society as an essential tool to success. A high priority on education in Japan has generated a highly skilled workforce. This workforce has catapulted Japan to the top of the world in technological advances and development. The success of Japanese advances in electronics helped boost Japan to the forefront of global economics. Japan is also a trade-friendly country, which has helped it compensate for a lack of natural resources that are usually necessary for countries to develop competitive economies.

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