Considering factors such as the appreciation of the yen, high corporate tax rates, and delays in the negotiation of free trade agreements (FTAs) and economic partnership agreements (EPAs), manufacturers already regard Japan as a somewhat unfavorable place to locate their production sites.
It is my great concern that the shift of Japanese firms’ production sites to overseas might accelerate if anxiety about electric power supply lingers. C.  Price developments  Next, I will move on to price developments. International commodity prices had been increasing on the back of high growth in emerging economies.