Production Possibility Frontier of Japan

The country I chose and my reason:

The country’s production possibilities frontier, which I have chosen is Japan. The reason I have chosen this country is because it had undergone a lot of bombing in the past, which had crippled its economy. Yet after the war Japan’s economy grown rapidly because of the huge foreign investments particularly from the US and because of manufacturing boom which took place after World War II. According to a recent census conducted in 2010, Japan’s population is approximately 128,000,000 making it the world's tenth most populated country.


Some major exports in the technological field:

  After the war, the constituents of exports gained ground through technology. Primary products, light manufactures, and crude items, which predominated during the 1950s, were progressively adumbrated by heavy industrial goods, complex machinery and equipment, and consumer durables, which required large capital investments and advanced technology to produce. This process was emphasized dynamically in the case of textiles, which composed more than 30 percent of Japanese exports in 1960, but less than 3 percent by 1988. Iron and steel products, which had grown rapidly in the 1960s to become nearly 15 percent of exports by 1970, declined to less than 6 percent of exports by 1988. Over the same period, however, exports of motor vehicles rose from under 2 percent to over 18 percent of the total. In 1991 Japan's major exports were motor vehicles, office machinery, scientific and optical equipment, and semiconductors and other electronic components. The GDP of Japan according to 2009 stands as $5.073 trillion (in the nominal GDP list of countries) $4.141 trillion (in the GDP PPP in the list of countries). Japan is mostly seen as a heavily export-dependent nation. As a percentage of GNP, however, the country exports less than many other major trading countries of the world. In 1991, for example, it exported 9.3 percent of its GNP compared with 14.9 percent for Italy, 18.2 percent for France, 18.2 percent for Britain, 22.1 percent for Canada, 24.8 percent for Germany, and 47.0 percent for the Netherlands. The United States exported a smaller share of its GNP at 7.4 percent. But Japan’s dependency still held high in 1991, on automobiles as just under half of all automobiles produced in Japan were exported.


Main Issue: Strategies to raise production possibilities frontier:

This article deals with the major productions of Japan and certain strategies as to how Japan can raise its production possibilities frontier. In comparison to Korea, Japan excels in assembling computers and cars. Yet Japan is exceptionally better in making computers as compared to making cars in which they are a wee bit behind. In order to make further growth in their production possibilities frontier it is suggested that instead of spending time making cars in which the opportunity costs is high as compared to Korea, that they should invest their time making computers. In making more computers, as compared to making cars of higher opportunity costs, they can trade their computers with Korea to get cars. In this way their production output will be more.


The four main resources of any country are land, labor, capital and entrepreneurship.

According to the Global Entrepreneurship Monitor survey of 42 countries, just 15% of working-age adults surveyed in Japan believed they had entrepreneurial skills. In order to deal with this issue it is a must for the Japanese universities to train their young adults in such a manner that they increase entrepreneurial activity in both the business sector as well as in government, educational and other sectors.


Concerning land, Japan plays a major role in air pollution as it is responsible for acid rain. It is seen as a culprit in emitting toxic gases into the atmosphere threatening: forestation, air and water in the Asian continent. The two main reasons are:

 1.)  Motor vehicles which "are the primary source of acid-forming pollutants such as nitrogen oxides, and are responsible for growing levels of ground-level ozone, a substance which hastens the formation of acid rain."

Coal burning power stations which emit toxins such as Sulfur dioxide (SO2) and Nitrogen Oxides (NOx) into the atmosphere.

It causes a lot of problems for infants, the elderly and pregnant women who suffer from lung and heart illnesses and as a result of acid rain precipitations are particularly the most vulnerable. In order to deal with these health issues, Japan is in the process of increasing her spending on environmental issues. Japan’s global environment-related spending will increase 6 percent from the previous fiscal year. This money can easily be spent on the output of other productions only if this land issue is dealt with quickly.

In order to deal with the labor issues, Japan’s executives can be compared to the global agent executives, so that Japan can know in which areas it can improve itself.

Comparing Japan Globally:

Japan’s overall competitiveness, has fallen in the world ranking since the early 1980’s and 1990’s and the IMD world Competitiveness yearbook 2007, ranked Japan 24th on the list placing them behind china who were 15th. It is predicted that China’s GDP will drastically overtake Japan’s GDP by 2016

 Another indicator of Japan’s low productivity is due to the lack of Japanese white collar workers which is one of the lowest among the G-7 countries, along with this fact there are lack of women and foreigners contributing to their economy and are not a considerable part of the country’s work force.

The globalization of human capital in Japan is being taken seriously and corrective measures are being taken to improve Japanese competitiveness in the global market place.

















"Japan – 2010." 2010 CIA WORLD FACTBOOK AND OTHER SOURCES 2010: n. pag. Web. 26 May 2010. < >.


"Japan Air Pollution." Washington Quarterly (1994): n. pag. Web. 26 May 2010. <>.

Fukushima, Sakie. "Innovating Japan through Globalization of Human Capital." “Economy, Culture & History Japan Spotlight Bimonthly (2008): n. pag. Web. 26 May 2010. <>.