Research On The Economic And Trade Relationship Between Japan And Brazil After World War Ⅱ

Economic and trade relationship is the foundation of the relationship between countries. The economic and trade relationship between Japan and Brazil is the epitome of economic relationship between economic powers and newly industrialized countries. It is also a presentation of economic relation between developed countries and developing countries. The analysis and research of the trade and direct investment relationship between the countries helps a lot to understand the economic and trade cooperation between the countries with different economic development levels. It provides a common direction of economic and trade cooperation between developed countries and developing countries. Also it proposes a beneficial consideration for the development of economic and trade of both economic powers and newly industrialized countries.Before the World War Ⅱ, the relationship between Japan and Brazil is next to nothing. Based on the Japanese immigrants, the relationship between Japan and Brazil is just involved with primary commodity and labour intensive industry at the beginning. After the World War Ⅱ, passing through more than 50 years development, the economic and trade relationship between the two countries reached the peak in 1960 s and 1970 s. During the period, bilateral trade volume saw a great increase and two waves of Japanese direct investment in Brazil took place. However, in 1980 s, Japan and Brazil went through “lost decade” on after another, twists and turns have appeared during the decade. Entering the new century, new changes have appeared in the relationship between Japan and Brazil. Japan has shifted its emphasis to political aspects. At the same time, the economic and trade level remains at the level of 1990 s. In terms of Brazil, Japan has shifted from “economic animal” to “political animal”. However, the relationship can’t be supported only by economic relationship. Under the wave of regional integration and the fierce competition with China in Brazil, Japan is unwilling to lost its leading role in Brazil’s economy, hoping to revival the economic and trade relationship through political measure. This poses a new challenge for the further development of the bilateral relationship.During the process, economic structure and strategies have been adjusted or changed in the two countries. Accompanied with the changes, after World War Ⅱ, some unique characteristics have been appeared in the relationship between Japan and Brazil. In the aspect of trade and economic relation, the trade trend is in line with Brazil’s trade demands, the trade balance is beneficial for Brazil. Also, the change of commodity structure and degree of complementarity of Brazil---Japan is greater than that of Japan—Brazil. In the aspect of Japanese direct investment in Brazil, new changes take place, such as instability, decrease of the shares, rational distribution of industry and lose control of both governments.The reason why the author analyzes the economic and trade relationship is because of the complementarity and interdependence of Japan and Brazil in economy and politics. In addition, the similar culture and value of the two countries and regional powers’ impetus role also make the author to write the paper. However, the further development of Japan and Brazil relationship is also facing barriers, including restriction factors of each country, America’s obstructions and the competition of other Latin American countries.After the World War Ⅱ, both highs and lows have appeared in the relationship between Japan and Brazil. The relationship plays an important role in economy and politics of both countries. Also, the group of America, Japan and Brazil, the group of America, Brazil and China, some countries in Middle East and Africa are also influenced a lot. Entering the new century, the economic and trade level between the two countries doesn’t make breakthrough, the Japanese direct investment remains unstable. Generally speaking, Japanese influence in Brazil’s outward economy has seen a decrease. As for Japan, Brazil plays a more important role in Japan’s political strategies than in its economic strategies. However, both economy and politics are important in the relationship between Japan and Brazil. As a result, stimulated by the regional integration and the global strategy of each country, new challenges have appeared in the process of revitalization of economic and trade relationship of Japan and Brazil under new international situation.