No other country prospered more than Japan during the cold war. While the U.S. and Soviet Union try to out compete with each other, Japan was able to focus on rebuilding their economy after World War 2. Japan was a supported ally to the U.S. and contribute money and goods during the cold war. After the cold war however, Japan was slow to establish themselves as a formable super power without the U.S. in the pacific. The dispute over the Northern Territories (four small islands) has been slow down to a crawl and the threat of nuclear weapon by North Korea. Talks with China and South Korea are always on edge especially about Japan’s responsibility in compensation for war atrocities during World War 2 where the Korean and Chinese women who were forced to provide sex to Japanese troops. Japan learn some hard lessons from the Gulf War. First, the type of armed conflict can draw a nation to war. Second, as the United Nations plays the role as peacekeeper, Japan must have a prominent role in that body. Lastly, the soldier is more respect than the banker. Japan emerged from the Gulf War with a tarnished reputation despite their financial …show more content…
Now Japan is facing strong international competition. Because of their inflexible economic system the Japanese companies find it difficult to quickly competitive challenges as their foreign counterparts. The typical Tokyo family spends about a third more of income each year on food than that of a New York family in part because of informal and formal trade barriers that still keep much foreign produce out of Japan. As of 2004 the large majority of economists and policy makers concur regarding what reforms Japan needs and there are definite signs of progress. Japan has entered into agricultural free trade agreements recently with other nations thereby weakening the excessive power of farmers.