Wage Hikes at Japan's Small Firms Closely Watched

The video discusses the challenges of raising wages in Japan amid rising inflation and costs. It highlights the difficulty of adjusting wages due to cultural and economic factors, especially for small and medium-sized businesses. While large firms are beginning to increase wages, smaller businesses struggle due to financial constraints. The video also explores the potential impact of tourism on wage increases and the need for stable wage growth to maintain inflation targets.

What is a significant challenge for businesses in Japan when it comes to adjusting wages?

• Wages cannot be lowered once they are raised.

• Wages can be easily lowered when the economy is bad.

• Inflation does not affect wage decisions.

• Employees can be easily dismissed.

What percentage of companies in Japan are classified as small and mid-sized businesses?

• 0.3%

• 99.7%

• 75%

• 50%

What is the main reason Masato Okajima decided to raise wages at his company?

• To increase company profits.

• To retain workers amid rising costs.

• To attract new customers.

• To comply with government regulations.

What do economists believe about the momentum for wage hikes in Japan?

• It is unpredictable.

• It is stable.

• It is decreasing.

• It is rising.

According to outgoing BJ governor Radhika Kuroda, what is the minimum wage increase needed to maintain inflation above 2%?

• 1%

• 2%

• 3%

• 4%