Looking at the world's GDP data from the International Monetary Fund (IMF), we can see that the world economy continues to expand. In 1980, the GDP was $11.1 trillion. This world GDP was $33.8 trillion in 2000. Furthermore, the world GDP in 2022 will be $95.8 trillion. It has grown nine-fold in the last 40 years. So, what is Japan's position in the world? The nominal GDP per capita for 2022 announced by the Cabinet Office in 2023 is $34,000 in dollar terms. This is the lowest figure among developed countries. Apart from the labor shortage, Japan has a certain amount of capital and technology. If this capital and technology can be utilized overseas, there is a possibility of a revival.
Kikkoman is a company that has successfully weathered the current yen depreciation. Kikkoman imports raw materials in dollars, so import costs rise when the yen is weak. To reduce such risks, they have created a system to procure raw materials from all over the world, manufacture, and sell them. Kikkoman does not export soy sauce from Japan to overseas. This is because soy sauce is liquid and bulky, and transportation costs are high. They can procure raw materials such as soybeans locally, build a factory, and make soy sauce using Japanese koji there. Local production and consumption is the best way to deal with exchange rate risks. Kikkoman popularized meat teriyaki in the United States. This company has spread soy sauce to the local food culture. They have expanded their business by taking root in the local area and understanding the local needs. Kikkoman's overseas profits have increased by about four times over the past 10 years.
Japan has many small and medium-sized enterprises that are recognized as excellent by the world. They are also number one in the world in the production of parts necessary for advanced technology. A good company is one that says, "They buy at the price we ask." Furthermore, companies that trade in yen, not dollars, are the best. For example, there are cases that products such as semiconductor manufacturing equipment are exported from Japan, but traded in yen and do not bear exchange risk. In the United States, both imports and exports are almost always in US dollars. In Europe, 70-80% of each country's exports and imports are in euros because of the euro. China is also moving to import energy in renminbi. At this point, the weaknesses of the dollar have become apparent. Crude oil, which has a large impact on price increases, is also imported in dollars. It would be great if a system could be established that the Middle East receives yen for crude oil exports and uses that yen for payments.