List of Figures and Tables
Figure I-1-1-1 World real GDP growth rate and contributions of consumption and investment ··· 6
Table I-1-1-2 Country/region forecast for real GDP growth rate according to the IMF ··· 7
Table I-1-1-3 Policy examples by policy areas and major economic measures by country/region ··· 9
Figure I-1-1-4 Fiscal balance in developed countries (upper figure) and emerging countries (lower figure) ··· 19
Figure I-1-1-5 Number of freelancers in the United States and the percentage of those who earn income only from freelance work ··· 20
Figure I-1-1-6 WTO's world goods trade volume outlook ··· 21
Figure I-1-1-7 Number of countries that have introduced export restrictions in medical goods ··· 21
Figure I-1-1-8 Number of introduced policies to restrict and promote goods trade, services trade, investments, and migration ··· 22
Figure I-1-1-9 Number and percentage share of harmful and liberalizing policies concerning goods trade ··· 23
Figure I-1-1-10 Percentage share of policies adopted for export restrictions (left figure) and import restrictions (right figure) (2020) ··· 24
Figure I-1-1-11 Goods Trade Barometer and merchandise export volume index ··· 24
Figure I-1-1-12 Year-on-year growth rate of manufacturing production and contributions by major industries ··· 25
Table I-1-1-13 Promotional policy for trade (publicly announced or put into force from mid-October 2019 to mid-October 2020) ··· 25
Figure I-1-1-14 World merchandise export values and the share of medical and stay-home goods ··· 28
Figure I-1-1-15 World production in manufacturing industries ··· 29
Figure I-1-1-16 World inward foreign direct investment flow··· 29
Figure I-1-1-17 Manufacturing and services PMI ··· 30
Figure I-1-1-18 Employment growth rates by industries in 2020 ··· 31
Table I-1-2-1 Major economic measures in the United States, Europe, and China ··· 32
Figure I-1-2-2 Scale of economic measures to address COVID-19 ··· 35
Table I-1-2-3 Countries' policies toward achieving green growth ··· 37
Figure I-1-2-4 Percentage of CO2 emissions and share of nominal GDP for countries (125 countries and one region) that have endorsed achieving carbon neutrality by 2050··· 38
Figure I-1-2-5 Initiatives related to ESG and SDGs ··· 42
Figure I-1-2-6 The number of PRI signing institutions and the amount of assets under management · 43 Figure I-1-2-7 Number of companies participating in SBT (worldwide) ··· 44
Figure I-1-2-8 Changes in the development of digitalization and automation in companies and business areas since the spread of COVID-19 ··· 45
Figure I-1-2-9 Percentage of remote work in the United States ··· 46
Figure I-1-2-10 Sales levels of EC retail sales in each country (indexed) ··· 47
Figure I-1-2-11 Uses of online communication tools ··· 48
Figure I-1-2-12 Global and Japanese business models viewed from intangible assets and direct investment ··· 49
Figure II-1-1-1 Japan's outstanding direct investment and Asia's share (all industries) ··· 52
Figure II-1-1-2 Japan's outstanding direct investment and share by region (manufacturing sector) ···· 53
Table II-1-1-3 Japan's outstanding direct investment to Asian countries and regions (manufacturing sector / end of 2019) ··· 53
Figure II-1-1-4 Japan's outstanding direct investment to Asia by country (manufacturing sector) ··· 54
Table II-1-1-5 Number of Japanese overseas manufacturing affiliates by industry (FY2018) ··· 55
Figure II-1-1-6 Changes in overseas production ratios of Japanese manufacturing industries ··· 56
Figure II-1-1-7 Overseas production ratios by industry of Japanese manufacturing industries (FY2018) ··· 57
Figure II-1-1-8 Changes in the number of Japanese overseas manufacturing affiliates by country and region where they are located ··· 58
Figure II-1-1-9 Changes in sales by country where Japanese overseas manufacturing affiliates are located ··· 58
Figure II-1-1-10 Sales-size by country and region of Japanese overseas manufacturing affiliates (FY2018) ··· 59
Figure II-1-1-11 Model of international division of production ··· 60
Figure II-1-1-12 Changes in intra-firm export ratios of manufacturing companies in Japan ··· 61
Figure II-1-1-13 Procurement of Japanese overseas affiliates (FY2018) ··· 62
Figure II-1-1-14 Trade flow centered on Asia (2019) ··· 63
Figure II-1-1-15 Sources of Japanese overseas manufacturing affiliates located in Asia (FY2018) ··· 64
Figure II-1-1-16 Changes in sources of Japanese overseas manufacturing affiliates located in Asia ··· 65
Figure II-1-1-17 Changes in sources of Japanese overseas manufacturing affiliates located in Asia by industry ··· 66
Figure II-1-1-18 Business relationship with a Japanese overseas manufacturing affiliates located in Asia ··· 67
Figure II-1-1-19 Changes in Japan's exports and imports of automotive parts ··· 68
Figure II-1-1-20 Changes in China's share of imports to Japan ··· 70
Figure II-1-1-21 Major partner countries and regions in Japan's import of parts ··· 71
Figure II-1-1-22 Changes in sales and procurement of Japanese overseas affiliates located in China ··· 72
Table II-1-1-23 Japan's outstanding direct investment to Thailand (end of 2010) ··· 73
Table II-1-1-24 Japan's outstanding direct investment to Thailand before and after the flooding in Thailand (2011) ··· 73
Figure II-1-1-25 Changes in Japanese overseas affiliates located in Thailand ··· 74
Figure II-1-1-26 Thailand's share of exports from Japan ··· 76
Figure II-1-1-27 Changes in Japan's exports by country (automotive engines and parts) ··· 76
Figure II-1-1-28 Changes in imports (automotive engines) by country in Thailand ··· 77
Figure II-1-2-1 Example of vertical and horizontal relationships with global supply chains ··· 78
Figure II-1-2-2 Perception of supply chain risk (2011) ··· 80
Figure II-1-2-3 Perception of supply chain risk (2020) ··· 81
Figure II-1-2-4 Number of occurrences of natural disasters by region ··· 82
Figure II-1-2-5 Japan's real GDP growth rate ··· 83
Figure II-1-2-6 Japan's real exports and real imports index ··· 83
Figure II-1-2-7 Indices of industrial production by region ··· 84
Figure II-1-2-8 Impact of the COVID-19 crisis on supply chains (manufacturing industries) ··· 87
Figure II-1-2-9 Details of the supply chain review (including reviews and considerations) ··· 89
Figure II-1-2-10 Measures for supply chains ··· 89
Figure II-1-2-11 Measures conducted following COVID-19 and their evaluation ··· 91
Figure II-1-2-12 Effects of BCP on COVID-19 crisis ··· 92
Column table 1-1 Cross-tabulation table on the concept of using special preferential tariffs and transferring production bases ··· 94
Column figure 1-2 Candidate sites for transfer of production bases ··· 95
Figure II-1-3-1 Calculation range for the amount of greenhouse gas emissions ··· 97
Figure II-1-3-2 Scopes of net-zero commitments ··· 98
Figure II-1-3-3 Sales of SBT-participating companies (compared to the total number of listed companies) ··· 99
Table II-1-3-4 A foreign legal framework that stipulates human rights in supply chains ··· 100
Figure II-1-3-5 Percentage of Japan's balance of direct investment in countries that stipulate supply chain human rights (2019) ··· 102
Table II-1-3-6 Structure integration and comparison of corporate statements and information disclosure ··· 106
Table II-1-4-1 Application of advanced technology to manufacturing processes and the supply chain, and its impact ··· 109
Table II 1-4-2 Structural changes in the international division of labor brought by digitalization ···· 110
Figure II-1-4-3 Overview of supply chain digitalization in Industry 4.0··· 111
Table II-1-4-4 Characteristics of supply chain by industry ··· 112
Figure II-1-4-5 Status on digitalization of information in the U.S. industry as a whole and in the manufacturing industry ··· 117
Figure II-1-4-6 Status of digitalization of supply chain-related information by industry in the U.S. manufacturing industry ··· 118
Figure II-1-4-7 Initiatives for improvement of production processes among Japanese companies ··· 119
Table II-1-4-8 10 Major Security Threats in information security ··· 120
Figure II-1-4-9 Percentage of human resources involved in information processing and communication belonging to IT companies and other companies ··· 122
Figure II-1-5-1 Change in global average tariff rates (by region) ··· 126
Figure II-1-5-2 Number of global online purchasers (domestic and cross-border transactions) ··· 126
Figure II-1-5-3 Forecast for expanding the amount of global cross-border EC market transactions ··· 127
Table II-1-5-4 WTO Trade Facilitation Agreement (TFA) ··· 128
Figure II-1-5-5 Trade facilitation implementation rate of major Asian countries ··· 129
Table II-1-5-6 Overall structure of the OECD Trade Facilitation Indicators ··· 130
Figure II-1-5-7 Effective measures for reducing trade costs (by income class, top 4) and reduction rates ··· 131
Table II-1-5-8 Progress of trade facilitation by item in major countries ··· 132
Figure II-1-5-9 Export dependence level of major countries ··· 132
Table II-1-5-10 Measures and benefits of trade facilitation according to TPP11 ··· 134
Figure II-1-5-11 Exports of the United Kingdom (to EU and to non-EU) ··· 136
Table II-1-5-12 Global top-tier trade platform (Overview) ··· 138
Table II-1-5-13 Service scope and functions of the world's trade digital platforms ··· 139
Figure II-1-5-14 Image of the TradeWaltz ··· 140
Table II-1-5-15 Specific details of improving operational efficiency and reducing costs through the introduction of TradeWaltz ··· 141
Figure II-1-5-16 Determinants for ASEAN companies (importers) to participate in the global value chain ··· 144
Figure II-2-1-1 Initiatives related to ESG, SDGs, and so on ··· 148
Figure II-2-1-2 Proportion of sustainable investing relative to total managed assets (2016→2018) ··· 149
Figure II-2-1-3 Percentage of sustainable investment in Japan's total assets under management ··· 150
Figure II-2-1-4 SDGs penetration status by company size ··· 151
Figure II-2-1-5 Incentives for addressing SDGs issues (By sector: Manufacturing) ··· 152
Figure II-2-1-6 Corporate value improved by contributing to the achievement of SDGs ··· 153
Figure II-2-1-7 Increase in the number of companies issuing integrated reports ··· 153
Figure II-2-1-8 Market opportunities in 2030 ··· 155 Figure II-2-1-9 Increase in the ratio of those born in and after the Millennial Generation of the total
population ··· 155
Figure II-2-1-10 Share of expected market opportunities (developing and developed countries) ··· 156
Figure II-2-1-11 Share of the amount of expected market opportunity creation by region (food and agriculture, cities, energy and raw materials, health and welfare) ··· 157
Figure II-2-1-12 Climate change opportunities are increasingly embraced among CEOs ··· 158
Figure II-2-1-13 Acceptable range for expenditure on ethical consumption ··· 159
Figure II-2-1-14 Acceptable range for expenditure on ethical consumption (compared to ASEAN) ··· 160
Figure II-2-1-15 Influence of a high degree of corporate social contributions on company choice ranking ··· 161
Figure II-2-1-16 Social concerns of Millennials and Generation Z ··· 162
Figure II-2-1-17 Example of business risks ··· 164
Figure II-2-1-18 International comparison of PBR (distribution percentage of the number of companies) ··· 165
Figure II-2-1-19 International comparison of PBR (distribution percentage of the number of companies) ··· 166
Figure II-2-1-20 Financial information and intangible assets ··· 167
Figure II-2-1-21 U.S. intangible asset investment ··· 169
Figure II-2-1-22 Japan's intangible asset investment··· 169
Figure II-2-1-23 Intellectual property investment in real gross fixed capital formation ··· 170
Figure II-2-1-24 Changes in the amount of ESG bonds issued (global) ··· 171
Figure II-2-1-25 Changes in the amount of ESG bonds issued (Japan)··· 172
Figure II-2-1-26 Scope of corporate value evaluation ··· 173
Figure II-2-1-27 Market Evaluation of IR excellent companies ··· 174
Figure II-2-1-28 Percentage of IR excellent companies that are above the approximation line ··· 174
Figure II-2-2-1 Changes in real GDP in developing and emerging countries (1970 = 1) ··· 176
Figure II-2-2-2 Changes in real GDP in ASEAN countries, India, etc. (2019 vs 1970) ··· 176
Figure II-2-2-3 Working poverty rate ··· 177
Figure II-2-2-4 Changes in the ratio of the working-age population in each country (1) ··· 178
Figure II-2-2-5 Changes in the ratio of the working-age population in each country (2) ··· 178
Figure II-2-2-6 Per capita GNI (2019) ··· 179
Figure II-2-2-7 Ratio of real GDP in ASEAN and India by industry (2019) ··· 180
Figure II-2-2-8 Ratio of ASEAN and Indian workers by industry (2019) ··· 181
Figure II-2-2-9 Changes in manufacturing industry ratio in real GDP (1) ··· 182
Figure II-2-2-10 Changes in manufacturing industry ratio in real GDP (2) ··· 182
Figure II-2-2-11 Ratio of exports in real GDP ··· 183
Figure II-2-2-12 Ratio of inward foreign direct investment stock in real GDP ··· 183
Figure II-2-2-13 Current account balance in emerging Asian countries (2019) ··· 184
Figure II-2-2-14 Trade balance of emerging Asian countries ··· 184
Figure II-2-2-15 Services balance in emerging Asian countries ··· 185
Figure II-2-2-16 Services balance in India, Thailand, and the Philippines (2019) ··· 185
Figure II-2-2-17 Breakdown of "other services" balance in India (2019) ··· 186
Figure II-2-2-18 Average daily online time ··· 187
Figure II-2-2-19 Increase in digital utilization and investment by companies due to the COVID-19 crisis ··· 188
Figure II-2-2-20 Number of poor people ··· 190
Figure II-2-2-21 Number of years spent as a middle income country ··· 192
Figure II-2-2-22 Changes in R&D spending versus GDP in Asian countries ··· 194
Figure II-2-2-23 Balances of fees for intellectual property rights, etc. (2019) ··· 194
Table II-2-2-24 Ratio of "informal employment" ··· 195
Figure II-2-2-25 Proportion of population covered by at least one social protection benefit ··· 196
Figure II-2-2-26 Regional share of online workers viewed by sector ··· 196
Figure II-2-2-27 Carbon dioxide emissions from fuel combustion by region, and the ratio of Asia in the world ··· 198
Figure II-2-2-28 Carbon dioxide emissions (the ratio of countries/regions in Asia, 2018) ··· 198
Figure II-2-2-29 Energy-related carbon dioxide emissions per capita (2017) ··· 199
Figure II-2-2-30 Electricity generation by fuel for Asian countries (2019) ··· 199
Figure II-2-2-31 Number of pieces of trash per square kilometer along the waterfront (2018) ··· 200
Column table 2-1 Overview of trade theory ··· 204
Column table 2-2 Example of empirical studies on Japan's labor market based on trade theory ··· 205
Column figure 2-3 Breakdown of manufacturing industries classified by FDI and exports ··· 207
Column figure 2-4 Comparison of labor productivity in manufacturing industries classified by FDI and exports ··· 208
Column table 2-5 Comparison of labor productivity components for FY2018 ··· 209
Column figure 2-6 Labor productivity gaps within the manufacturing industries ··· 210
Column figure 2-7 Number of workers in the System of National Accounts··· 211
Column figure 2-8 Employment of firms classified by overall manufacturing industries, FDI and exports212 Column table 2-9 Details of employment in manufacturing industries classified by FDI and exports ··· 213
Column figure 2-10 Capital investment deflator in manufacturing industries based on JIP database and System of National Accounts ··· 217
Column figure 2-11 Domestic shipment values of industrial robots and working-age population in Japan 219 Figure II-2-3-1 Circular structure in business activities of companies ··· 220
Figure II-2-3-2 Markets oriented by environmental and social values (example of ethical consumption)222 Table II-2-3-3 Policies for achieving green growth in countries and regions ··· 222
Table II-2-3-4 Approach to social issue-solving businesses ··· 226
Column figure 3-1 Number of patents for climate change mitigation technologies ··· 230
Column figure 4-1 Trends of signing regional trade agreements ··· 233
Column table 4-2 Regional trade agreements with labor provisions ··· 235
Column table 4-3 Examples of empirical studies analyzing the relationship between trade rules and trade/employment ··· 237
Column figure 4-4 Revealed comparative advantage indexes of countries whose major export items are machinery and machinery parts ··· 239
Column figure 4-5 Legal minimum wage and GNI per capita of countries whose major export items are machinery and machinery parts ··· 241
Figure II-3-1 Necessity to build a trusted global value chain ··· 243
Figure II-3-2 Appeal for upgrading "free trade" ··· 244
Figure II-3-3 New challenges brought about by the active response of countries and regions in the digital field ··· 246
Figure II-3-4 Building a "trustworthy" digital economy ··· 247
Figure II-3-5 Asia Energy Transition Initiative (AETI) ··· 248
Figure II-3-6 Human rights initiatives ··· 249
Figure II-3-7 Forming an economic order to support the "upgrade" of the free trade system and building a value chain that leverages Japan's strengths ··· 250
