Discusión de los resultados de las encuestas a los directivos

expanded. In the 1950s, the early days of Japan’s economic recovery, exports were limited so it was critical to have strict government control over imported goods and resources.⁵⁹ Today, they predominantly import goods such as petroleum, natural gas, coal, semiconductors, and clothing. Japan is the largest importer of coal in the world, and the third largest of agricultural products and liquefied natural gas.⁶⁰ A quarter of all of Japan’s imports come from China.

Japan is the second most advanced economy in the world and the third largest by nominal GDP, which is $4.41 trillion.⁶¹ By per capita GDP, Japan is the 28^th largest. A large proportion of Japan’s economy stems from exported goods, thanks to its large and highly advanced manufacturing sector. Worldwide, Japanese manufactured goods are recognized for their high quality, sophistication and durability. The country is the third largest manufacturer of vehicles, with Toyota, Mitsubishi and Honda

59Keiichi Tsunekawa, "Japan: The Political Economy of Long Stagnation," In Two Crises, Different Outcomes: East Asia and Global Finance, edited by Keiichi Tsunekawa and T. J. Pempel, Ithaca; London: Cornell University Press, 2015, 182-215.

60Benjamin Elisha Sawe, "The Economy Of Japan," World Atlas.

December 06, 2016. https://www.worldatlas.com/articles/the-economy-of-japan.html.

61 Ibid.

among the biggest in the world.⁶² Other major manufacturing industries of Japan include shipbuilding, robotics, and other electronics.

Unlike many other manufacturing-based economies, Japan does not rely on low labor costs for profit and competition. Instead, it focuses on high quality standards, innovative product design, and a highly skilled workforce to maintain competitiveness.⁶³ Japan also has advanced modern infrastructure and strong international trade links all over the globe, which both contribute to the high quality of goods produced in Japan.

Much like Japan’s economic success story, South Korea developed rapidly following the 1950-53 war with North Korea, becoming a high tech, globally connected nation within a few decades.⁶⁴ Starting in the 1960s, South Korea began increasingly importing raw materials, promoting investment over consumption and putting resources towards export-oriented industries. Keeping wages low

62Asialink Business, "Manufacturing in Japan," Asialink Business.

Accessed March 13, 2019.

https://asialinkbusiness.com.au/japan/business-practicalities-in-japan/manufacturing-in-japan?doNothing=1.

63 Ibid.

64"South Korea." Forbes - Best Countries for Business. 2018.

Accessed March 11, 2019. https://www.forbes.com/places/south-korea/.

and government spending to a minimum, the economy grew tremendously fast. By the late 1990s, South Korea entered the ranks of the advanced economies of the OECD, helped by continuing similar policies about wages and spending. Such policies gave way to globally recognized chaebol industries such as Hyundai and Samsung.⁶⁵

As South Korea has limited natural resources, it has to import the majority of needed resources for its economy to flourish. South Korea’s top imports include petroleum, lab equipment, and coal.

Meanwhile, the majority of South Korea’s exports stem from high tech industries and refined resources, including vehicles, refined petroleum, and integrated circuits.⁶⁶

More recently, with the election of President Moon Jae-in in 2017, South Korea has turned its attention to increasing wages and government spending. Reasons for these changes in policies are likely to combat challenges the country faces, including its heavy

65 Ibid.

66 OEC, "South Korea," OEC - South Korea (KOR) Exports, Imports, and Trade Partners. 2018. Accessed March 10, 2019.

https://atlas.media.mit.edu/en/profile/country/kor/.

reliance on exports rather than domestic consumption, an inflexible market, and economic dominance by the chaebols.⁶⁷

While South Korea has the 5^th largest export economy in the world, just below it is Italy, another country that lacks natural resources.⁶⁸ Italy has the ninth biggest economy, with a focus on service and manufacturing industries. Within the service sector, the largest contributors are wholesale, retail sales and transportation sectors.

The manufacturing industry is specialized in high-quality products and is predominantly run by smaller enterprises that are mostly family-owned.⁶⁹

Italy’s economy is divided geographically as well as by industry.

The northern part is highly industrialized and produces the majority of the nation’s wealth. The southern half of Italy is less developed, more dependent on agriculture, and has a higher unemployment

67"South Korea," Forbes – Best Countries for Business. 2018.

Accessed March 16, 2019. https://www.forbes.com/places/south-korea/.

68 OEC, "South Korea," OEC - South Korea (KOR) Exports, Imports, and Trade Partners. 2018. Accessed March 10, 2019.

https://atlas.media.mit.edu/en/profile/country/kor/.

69Focus Economics, "Italy Economy - GDP, Inflation, CPI and Interest Rate," Focus Economics | Economic Forecasts from the World's Leading Economists. February 26, 2019. Accessed March 11, 2019. https://www.focus-economics.com/countries/italy.

rate.⁷⁰ As a country poor in natural resources, the energy and manufacturing sectors of the economy are highly dependent on imports. At times, this can make Italy’s external position vulnerable when there are changes in import prices, such as the cost for fuel.⁷¹

Re-export Economies: Singapore and Hong Kong

Despite its small size, lack of rural land and limited natural resources, Singapore has rapidly developed since gaining independence in 1965 and its recognized today as one of the most advanced and livable city-states in the world.⁷² With virtually no resources of its own, Singapore has battled against the odds for 50 years, integrating advanced urban solutions and finding economic stability. It originally built its prosperity as an entrepot,⁷³ a nation

70 Ibid.

71 Ibid.

72Convention Bureau, "How Singapore's Lack of Natural Resources Yielded a Model Contemporary City," Quartz, March 10, 2016. Accessed March 12, 2019. https://qz.com/629993/how-

singapores-lack-of-natural-resources-yielded-a-model-contemporary-city/.

73"Singapore: Economy." The Commonwealth. 2019. Accessed March 15, 2019. http://thecommonwealth.org/our-member-countries/singapore/economy.

reliant on importing raw materials from foreign countries to be processed and re-exported. Initially, following independence, the main sectors were electrical assembly and oil refinery. As more companies set up semiconductor plants and other electronics industries in Singapore, other industries followed, including pharmaceuticals and financial services.⁷⁴

According to the Index of Economic Freedom, Singapore has the 2^nd freest economy in the world, as of 2019.⁷⁵ The nation largely owes its success as a highly developed free market economy to its fair and open business environment as well as its prudent fiscal and monetary policies. The government of Singapore actively promotes economic growth through policies that create incentives, increase public investment, and focus on economic diversification.⁷⁶ The people of Singapore’s property rights are well-secured by the government, which helps to promote productivity growth and entrepreneurship. In addition, it has one of the lowest unemployment rates in the developed world.⁷⁷ It also boasts of one

74 Ibid.

752019 Index of Economic Freedom, "Singapore Economy:

Population, GDP, Inflation, Business, Trade, FDI, Corruption,"

Heritage. 2019. Accessed March 18, 2019.

https://www.heritage.org/index/country/singapore.

76 Ibid.

77 Ibid.

of the world’s first-rate K-12 public education system that prepares its citizens for scientific and technological tertiary schooling.

Today Singapore is among the most prosperous nations on Earth.

The economy is dominated by service industries, but is also a major manufacturer of electronics, refined petroleum, chemicals and pharmaceuticals. Singapore’s dependence on exports is reliant on these various goods. Because of this dependency, its economy is largely susceptible to international economic affairs. It plunged into recession in 2001 as a result of the global downturn in information technology, and again in 2008 due to the worldwide economic recession.⁷⁸ On both occasions, however, Singapore’s economy bounced back relatively easily.

Another important aspect of Singapore’s economy is the city’s port. The city’s favorable geographic location and strategic vision has established itself as a global port hub.⁷⁹ It offers a high level of connectivity as a prominent transshipment hub and serves as a gateway between East Asia and Europe. In 2017, Norwegian consultancy Menon Economics placed Singapore as the No. 1

78Singapore : Economy." The Commonwealth. 2019. Accessed March 15, 2019. http://thecommonwealth.org/our-member-countries/singapore/economy.

79Civil Service College Singapore, "Connecting to the World:

Singapore as a Hub Port," CSC Singapore. July 6, 2018. Accessed March 14, 2019. https://www.csc.gov.sg/articles/connecting-to-the-world-singapore-as-a-hub-port.

maritime capital in the world, due to its excellence in shipping, ports and logistics, high competitiveness and attractiveness. It was also recognized for its use of advanced maritime technology.⁸⁰ Similar to Singapore, Hong Kong has an open and free market economy, is highly dependent on international trade, and focuses much of its financial attention on re-exports.⁸¹ It also has no tariffs on imported goods. Due to its lack of natural resources, Hong Kong must import the majority of food and raw materials, oil, natural gas and electricity.⁸² Much like other nations in the same predicament, Hong Kong’s reliance on foreign imports makes the country

80 Ann Williams, "Singapore Is World's Top Maritime Capital - Again." The Straits Times. April 26, 2017. Accessed March 12, 2019. https://www.straitstimes.com/business/economy/singapore-is-worlds-top-maritime-capital-again.

81Index Mundi, "Hong Kong Economy - Overview." Hong Kong Economy - Overview - Economy. January 20, 2018. Accessed

March 18, 2019.

https://www.indexmundi.com/hong_kong/economy_overview.ht ml.

82Economy Watch, "Hong Kong Trade, Exports and Imports."

Economy Watch. March 15, 2010. Accessed March 18, 2019.

http://www.economywatch.com/world_economy/hong-kong/export-import.html.

susceptible to global economic slowdowns and financial market volatility.⁸³

Hong Kong has a laissez faire policy so government intervention in the economy is limited. Hong Kong is a full member of the World Trade Organization (WTO) and the Asia Pacific Economic Cooperation forum, independently of China. To remain a gateway to China, the Hong Kong government is increasing its economic integration with the Pearl River Delta.⁸⁴ Their largest trading partner is mainland China and accounts for half of Hong Kong’s total trade by value, with the banking and finance sector making up a large proportion of Hong Kong’s economic integration with China.⁸⁵

Niche Industry Economies – Belgium and Switzerland

Despite its small size and few natural resources, Belgium benefits from its strategic geographic location, situated between the UK,

83“Hong Kong," Forbes - Best Countries for Business. 2018.

Accessed March 11, 2019.

84Economy Watch, "Hong Kong Trade, Exports and Imports."

Economy Watch. March 15, 2010. Accessed March 18, 2019.

http://www.economywatch.com/world_economy/hong-kong/export-import.html.

85“Hong Kong." Forbes - Best Countries for Business. 2018.

Accessed March 11, 2019.

Germany and France, the three biggest economies in Europe.⁸⁶ Their economy relies heavily on international trade, with the majority of its sectors focused on exporting products. On a per capita basis, Belgium exports twice as much as Germany and five times as much as Japan.⁸⁷

With the exception of its remaining coal resources, Belgium has no significant natural resources. Instead, it imports basic goods and then increases their value through advanced manufacturing before exporting the finished products around the world.⁸⁸ Its global location, EU participation and highly skilled workforce all assist in strengthening Belgium’s economy. Since the industrial era, Belgium has developed an efficient infrastructure and

86Nordea, "The Economic Context of Belgium," The Economic Context of Belgium - Economic and Political Overview - Nordea Trade Portal. 2016. Accessed March 14, 2019.

https://www.nordeatrade.com/en/explore-new-market/belgium/economical-context.

87Nations Encyclopedia, "Belgium - Overview of Economy,"

Encyclopedia of the Nations. 2019. Accessed March 12, 2019.

https://www.nationsencyclopedia.com/economies/Europe/Belgiu m-OVERVIEW-OF-ECONOMY.html.

88Nations Encyclopedia, "Belgium - Overview of Economy,"

Encyclopedia of the Nations. 2019. Accessed March 12, 2019.

https://www.nationsencyclopedia.com/economies/Europe/Belgiu m-OVERVIEW-OF-ECONOMY.html

transportation system, which combined with its multilingual, educated workforce has made them one of the world’s most productive states.⁸⁹

Belgium’s economy also varies depending on geographic location.

In the more rural areas, there is a higher rate of unemployment, while there is a lower rate in urban centers. In towns and cities, the economy is dominated by service industries, while the Belgian countryside is mostly agricultural. The overall unemployment rate, however, is lower than the EU average, and Belgian wage levels are amongst the highest on the continent.⁹⁰ Each region of Belgium has individual powers over trade, industrial development, and environmental regulation. In addition, each region has sought out foreign investment, which can be detrimental to competing regions.⁹¹

As one of the founding members of the European Union, Belgium has been a key proponent of regional economic integration. It has supported eliminating trade barriers and tariffs amongst EU members and advocated for the European Monetary Union (EMU), which replaced individual currencies with the universal euro.⁹²

89 Ibid.

90 Ibid.

91 Ibid.

92 Ibid.

While not part of the EU, another European nation that has financially flourished without natural resources is Switzerland. The Swiss have produced numerous large companies in the niche industry sector, such as Nestlé, Adecco, UBS, Zurich Financial Services, Swatch and Rolex.⁹³ However, smaller enterprises also play major roles in the Swiss economy. Like Belgium, foreign trade makes up a large proportion of Switzerland’s GDP, with the EU serving as a major trading partner alongside the US and China.⁹⁴

The largest sector in the Swiss economy is the tertiary sector, which includes banking, insurance and tourism. This sector employs three-quarters of the workforce. The second largest sector is for industry, trade and crafts, and includes metal, machine, watch and textile industries as well as chemical and pharmaceutical industries.⁹⁵ Much like other economies that rely predominantly on imports and exports, the agricultural sector of Switzerland is by far the smallest portion of the economy, and relies heavily on government subsidies.

93Inter Nations, "Economic Sectors and Taxes in Switzerland."

InterNations - Connecting Global Minds. 2019. Accessed March 13, 2019. https://www.internations.org/switzerland- expats/guide/working-in-switzerland-15505/economic-sectors-and-taxes-in-switzerland-2.

94 Ibid.

95 Ibid.