Income Inequality (Lorenz Curve and Gini Coefficient

Above is the Lorenz Curve for Japan in the years 2008 and 2013. The Gini Coefficient for 2008 was 0.348 and the Gini Coefficient for 2013 was 0.329. The change in the Gini coefficient as well as the change in the distribution of income in each quintile shows that the distribution of income is becoming slightly more equal (lower 80% of people have gained more wealth).

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Aggregate Demand Factors

From these graphs, it seems as if Japan experienced some slow growth for aggregate demand. However, around 2015 it can be seen that there was less consumer and government expenditure. We can also see that Japan seemed to see the most growth from 2009 to around 2012. When looking at GDP growth, Japan saw the most growth between 2009 and 2010. Since GDP and Aggregate demand are calculated in the same way (GDP being aggregate demand in the long run), it can be expected that the trends in Japan's GDP, factors for aggregate demand, and aggregate demand would be similar. Business Confidence

WTO & Japan (An Overview of the Information Technology Agreement)

Previously, Japan has greatly benefitted from many of the agreements and negotiation rounds that the WTO (World Trade Organization) has set in place. From the initial trade agreements set in place after WWII, Japan was able to freely trade with other countries and open it's doors to working with countries all around the world. Much of Japan's postwar economic expansion is due to this and to the Bretton Woods agreement. One particular agreement that has benefitted Japan is the ITA (Information Technology Agreement). Japan was one of the countries that lead this agreement which works to reduce trade barriers and eliminate tariffs for the rapidly growing electronics and IT industry. This agreement aims to completely eliminate tariffs on around 200 products for the 92 participating countries by 2024. Since Japan is a large manufacturer and exporter of electronic products, the elimination of tariffs and trade barriers for electronics is highly beneficial for the country. It was e...

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