• Japan was the first Asian country where industrialization took place.
• The Meiji era (1868-1912) may be regarded as the epoch making in the history of Japan. During his period modernization of Japan took place.
• Japan progressed rapidly after the signing of the Treaty of Kanagawa and a drastic change in the political system took place.
• In July 1853, US representative Matthew Calbraith Perry, signed this treaty with Japanese Government after which ports of Shimoda and Hakodate opened to American trade and the US Consulate in Japan was established.
• The USA was the first western nation to establish close relations with Japan since its declaration closed to foreigners in 1683.
• In 1869, the first telegraph line was laid between Tokyo and Yokohama by Mr. Brunton. In 1871, New Postal System was introduced in Japan.
• In 1871 a group of Japanese politicians known as the Iwakura Mission visited Europe and the USA to learn western policies of business. The result was a thoughtful state led industrialization policy to stop Japan from falling behind.
• The Monetary system was organized and nationalized.
• The Bank of Japan, founded in 1877, used taxes to fund model steel and textile factories. Education was extended and Japanese students were sent to study in the west.
• In 1887, Yokohama Gold and Silver Banks were established to procure capital for foreign trade.
• Development of the banking system and foreign trade transformed the economy of Japan.
• The young emperor Mutsuhito introduced a series of reforms to modernize the economy of the country.
• Industrialization in the field of manufacture of arms and ammunition, textile had already begun during the period of the Tokugawa Shogunate.
• The quality of the product was not the main concern Japanese manufacturer, their purpose was mainly to meet domestic needs at low prices and to flood the European market with cheap products.
• The role of the state was very important as the state provided capital to the Japanese Entrepreneurs to set up factories.
• Japanese used reverse engineering to manufacture a large number of machines.
• Agriculture Reforms were introduced: Peasants were made owners of land they have been tilling for years, agriculture colleges were opened etc.
• This development further advanced Japan and improved its economy and made Japan the first Asian Country to develop.
• The pace of industrialization was rapid. In spite of being a late comer on the industrial scene, Japan reached the level of industrialization in Europe within 3 decades.
• The industrial revolution in Japan was triggered by a spirit of nationalism due to which the exploitation of the working class was relatively less in Japan.
• Although Europe had played a vital role as the “factory of the world,” the region became a battleground when World War I broke out in 1914 and their supply of commodities declined.

Japan became a net creditor during the war, and recognized itself as a nation based on trade.