Economic Assessment on Japan and Spain

Economic Assessment on Japan and Spain

International Economics

Team 3

June 24, 2015

Introduction

Within Japan’s social science area, economic history has occupied a moderately large field. After World War II ended in 1945, Japan made advancements towards economic rebuilding as a democratic and pacifist state. With the concentration of capital and resources in certain key industries such as electric, power and steel by the highly educated and lavish labor force, Japan was able to succeed in recovering from the wrecks of the war and achieve industrialization during the 1950’s and 1960’s. Economic growth was high in Japan during the mid-1960 through the 1970’s due to it becoming a mass-consumption society. Technological innovations urged the development of industrial facilities and sales of consumer products such as television, refrigerators and automobiles.

The economy showed resilience especially after the two oil crises of the 1970’s. Due to this crisis, Japan developed fuel-efficient products and manufacturing processes. Japan’s industrial structure went from a centered one to a more traditional “smokestack” industry. This change put focus more on the high-tech, electronic industries. As a result, around the world, Japanese products have the reputation of being high quality, reasonably priced and energy efficient. After the yen increase in the mid-1980’s, Japan became a major player on the global financial market. At the beginning of the 1990’s, land and stock prices suddenly collapsed and Japan’s economy plunged into a recession.

Spain has a mixed capitalist economy. Spain is a decentralized country with 17 autonomous regions and two autonomous cities. Spain’s economy is the 5th largest in Europe and until 2008 was considered the most dynamic in Europe, attracting a significant amount of foreign investment. In regards to trade in Spain, it is very important to the nation’s economy. It accounts for more than half of Spain’s GDP. Some of Spain’s trading partners are Germany, France, Portugal, and Italy. Macroeconomic stability in Spain has been weakening. The greatest area of concern is the highly inflexible market which commentators claim discourages job creation.

Spain has been progressing economically since the end of the Spanish Civil War in 1939. Spain economy suffered devastation as a result of this war. During this time, Spain made quick developments that would be known as the “Spanish Miracle. In 1986, Spain joined the European Union and became the first out of 11 countries to adopt the Euro in 1999. In 2002, they introduced Euro