Japan is the only example of collective capitalism in practical form. Japan has the world’s third-largest economy by purchasing power parity (PPP) and the second largest by market exchange rates. Collective capitalism’s influence can be seen elsewhere in modern Japan.

A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand.

Japan’s industrialized, free market economy is the second-largest in the world. Japan has few natural resources, and trade helps it earn the foreign exchange needed to purchase raw materials for its economy.

Japan is a mixed economy since the government controls some of its production in the market. It is also run by private corporations and is quite competitive due to the trade tariffs and quotas that the government has put in place.

Overview of the Economy of Japan The largest industries are agriculture and fishing, manufacturing, and tourism among others. Japan’s GDP per sector is as follows: services 71.4%, industry 27.5%, and agriculture 1.2%. 0.2% of the population of Japan lives under the poverty line of under $1.90 a day.

Industry. Since the war Tokyo has taken over from Ōsaka the role of leading industrial centre in the country. The region has a highly diversified manufacturing base. Heavy industries—such as metals, chemicals, machinery, transportation equipment, and oil refining—are concentrated in Chiba, Kawasaki, and Yokohama.

The factors behind Japans success is mainly down to exporting. Japan exports many products ranging from electronics, cars and computers with its main and the most important trading partner being the USA which in turn imports more than a quarter of japans exported products.