          
          
          The Japanese economy continues to experience success 
          despite the recession in the United States. Since 1987, 
          Japan has enjoyed strong economic growth, highlighted by 
          low inflation and unemployment and led by strong domestic 
          rather than external demand.  The real GNP growth rate in 
          1990 was 5.6 percent.  Japanese monetary policy played an 
          important role through 1989 in sustaining expansion of 
          Japanese domestic demand, while falling import prices and a 
          measure of deregulation kept inflation at bay.  Troubled 
          stocks and more stringent monetary policy have not yet 
          dampened perceptibly the strong growth in all components of 
          domestic demand, except housing. Consumer spending and 
          corporate investment are the mainstays of the current boom.
          
          More and more U.S. companies are realizing that the best 
          way to respond to Japanese competition at home and in world 
          markets is to become involved in the Japanese market.  Not 
          only is Japan the world's second largest economy ($2.96 
          trillion) after the United States, it is the largest 
          economy in Asia and the second largest market for U.S. 
          exports after Canada.  Japan has a highly educated and 
          efficient labor force, a stable government, an economy 
          driven by high levels of household savings and capital 
          investment, a huge and growing domestic market, and 
          continuing growth exceeding that of the United States.  Not 
          only are there opportunities for U.S. companies in the 
          Japanese market, but market entry into Japan should be a 
          vital part of any company's international marketing 
          strategy.
          
          Over the next several years, Japan will offer many new 
          business opportunities -- in infrastructure build-up, as 
          the tremendous economic growth has brought a need for 
          airports, roads, bridges, and housing; in leisure, as the 
          Japanese worker finds more time and money to spend off the 
          job; in retirement communities and health care with the 
          "graying" of Japanese society; in changing and broadening 
          consumer tastes, as the average Japanese consumer has 
          become more cosmopolitan with greater exposure to foreign 
          products; and in Japan's large Official Development 
          Assistance (ODA) projects.
          
