Thursday, December 10, 2015

Analysis of Japan

Blog #2
Rui Yamamoto

There are many developed countries in the world and Japan, which is my home country, is one of them. I lived in Japan at least 19 years and learned a lot of things. However, after I came to Roanoke College, I realized that I didn’t know much about Japan. Therefore, to know more about my home country, I choose Japan as my researching objective. By using the UN Comtrade data, I will discuss the general trading patterns and analyze the export of commodity ‘84-Nuclear reactors, boilers, machinery, etc’ of Japan.
                First topic is about the general trading patterns of Japan. According to the data from UN Comtrade, three biggest imported commodities are ‘27-Mineral fuels, oils, distillation products’, ’84-Nuclear reactors, boilers, machinery, etc’ and ’85-Electrical, electronic equipment’ and three biggest exported commodities are ‘84-Nuclear reactors, boilers, machinery, etc’, ’87-Vehicles other than railway, tramway’ and ‘85-Electrical, electronic equipment’ (UN Comtrade Demo, n.d.). Interesting point is that there is no significant change in both imported and exported commodities from the past. This may be because the economy of Japan is already stable and there was no need to make change in Japanese industry. One big characteristic of import is that the proportion of ‘27-Mineral fuels, oils, distillation products’ is really big. This is because there is almost no place that gases or oils are deposited in Japan. However, there are many companies and the dependence of thermal power is strong, so Japan needed to import a lot of oils from other countries. What about the countries which have strong connection with Japan. According to the UN Comtrade data, three big importing countries of Japan are China, United States and Australia and three big exporting countries are China, United States, and South Korea (UN Comtrade Demo, n.d.). From this information, we can see that Japan has a strong connection with China and United States. Also, there is interesting trend in both total amount of import and export. Although both of them are basically increasing, there is a drop in 2009 and 2013 (UN Comtrade Demo, n.d.). It is easy to explain the one in 2009 because there was a great recession in 2008 and almost all of the countries, including Japan, experienced bad economies. How about the drop in 2013? One of the keys is the ‘84-Nuclear reactors, boilers, machinery, etc’.
Japan’s biggest export commodity is ‘84-Nuclear reactors, boilers, machinery, etc’. The commodity is always on the top export very year. However, in 2012 a great earthquake occurred in Japan and consequently nuclear power plants in Fukushima melted down by a tunami. After the disaster, Japan stopped many nuclear power plants. According to one chart, the amount electricity produce by nuclear power in 2010 was 280 TWh, but in 2013, it dropped to 15 TWh (Nuclear Power in the World Today, 2015). Therefore, the demand for the nuclear power plant disappeared in Japan. Also, some countries started to think that nuclear power plants made in Japan are not safe. As a consequence, the demand for ‘84-Nuclear reactors, boilers, machinery, etc’ made in Japan decreased. Also, because there was no demand for them, Japan decreased amount of importing ‘84-Nuclear reactors, boilers, machinery, etc’. With the combination of the earthquake and the decrease in demand of Japanese nuclear power plants, both import and export in 2013 decreased.
I only could look at a data until 2013, but I am quite sure that both import and export of Japan decreased or stay at the same level in 2014 and 2015. Because one of important commodity is losing power, Japan will face serious problem in the future. The important thing is to look at the reality and change a direction of industry in Japan.
One thing I learned form this research is that by looking at the row of data, it is just data. However, by combining it with people’s insight, it will become important and helpful information to understand the world. I think this is important to understand the reality of the world.

References
                Nuclear Power in the World Today. (February, 2015 ). World Nuclear Association. Retrieved from http://www.world-nuclear.org/info/current-and-fu ture-generation/nuclear-power-in-the-world-today/
UN Comtrade Demo. (n.d.). SAS Institute. Retrieved from http://w ww.sas.com/software/visual-analytics/demos/un-comtrade-basic.html

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