These developments warrant careful monitoring as they could have a global impact. Second is the vulnerability of Japan’s economy to exogenous shocks and stresses. Since the 1990s, the economy experienced sharp downturns triggered, for example, by concern over the financial system, withdrawal of fiscal support, and the global economic slowdown.
Indeed, aside from language and cultural problems, which may not be the most significant obstacles in light of other international migration experiences, the size, heterogeneity and lack of portability of labor benefits could be a major discouraging factor. Also, other structural reforms may require international coordination, such as unified liberalization of remaining trade barriers in the services sector.