"Question: Japan's competitiveness in the global market keeps falling. Why is this happening?
Answer: There are five factors I am concerned about: a declining birthrate, a stronger yen, a high corporate tax rate, economic partnership agreements and free trade agreements with other countries and trends in labor and environmental regulations. In particular, if the birthrate continues to fall, the domestic market will shrink even more and stagnate. It will translate into a smaller production base and much higher labor costs because of ballooning social security costs. "
Source: Sharp boss: Firms need policy help
BY MANABU NAGASHIMA AND HIDEAKI ISHIYAMA
THE ASAHI SHIMBUN
2010/10/27
http://www.asahi.com/english/TKY201010260367.html