The location of Japan is strategic in the Northeast Asia. It is an island chain between the North Pacific Ocean and the Sea of Japan. After defeat in the World War II, Japan resiliently recovered to become an economic power and a staunch ally of the US. While the emperor of Japan retains his throne as a symbol of national unity, actual power rests in the networks of powerful politicians, bureaucrats, and business executives.

Strong Government-Industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (just1% of GDP) helped Japan advance with extraordinary rapidity to the rank of the second most technologically-powerful economy in the world after the US, and the third biggest economy after the US and China. One remarkable characteristic of the economy of Japan is the working together of manufacturers, suppliers, and distributors in closely-knit groups called keiretsu.

Industry, the most significant sector of the economy of Japan, is largely dependent on imported raw materials and fuels. Its much smaller agricultural sector is highly subsidized and protected, with crop yields among the highest in the world.

Except rice, Japan imports about 50% of its requirements of other grains and fodder crops. Japan maintains one of the largest fishing fleets of the world, and accounts for about 15% of the total global catch.

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