GLOBAL (NON) COMPETITIVENESS
Why Japanese companies are falling behind the rest of the world, and what they can do about it
Japan's economy has a lot of things working in its favor. It is one of China's nearest neighbors, which creates great export potential, as well as the ability to achieve economies of scale and benefit from low-cost employees. Japan has low inflation, a high level of foreign direct investment, low unemployment, excellent labor relationships, strong corporate social responsibility, and significant investments in research and development. But despite all these positives, Japan is not doing terribly well. The 2012 IMD World Competitiveness Yearbook ranks it only 27th out of 59.