AbstractIn recent decades, the global economy has experienced an unprecedented level of integration. Previously, I provided a list of knowledge management tools that can be used to analyze many issues and trends, as well as why these tools are important in the global economy. These tools are essential to international relations because they allow us to examine global issues beyond the headlines. This article further demonstrates how these tools could be applied to solve the problem or realize business opportunities in the current Japanese business environment. During the 1990s, Japan was exposed to one of the most difficult periods of structural transition in its postwar period. history, in terms of social and economic conditions. There have been two major changes: one is a substantial decline in economic growth in real terms, and the other is a changing social structure characterized by declining birth rates and an aging population. Under the pressure of changes in the economic environment brought about by globalization and innovations in the field of information technology, Japanese companies are forced to adapt to the new situation. As businesses face fierce international competition, it has become more essential to understand basic knowledge of complex legal, cultural, economic and social issues. Engaging in international business also requires paying attention to international regulations, international business planning, international market research, financing, distribution and other areas that must be considered separately from domestic business matters. The paper suggests some of the basic tools that can be applied to solve the problem or realize the business opportunities in the current Japanese business environment. International Trade Theory Export trends have been an important factor during Japan's current period of economic adjustment, and the structures of Japanese exports, as well as imports, have evolved significantly in recent years. Changes in the country's export and import structures during the 1990s can be characterized by the following three key developments: (1) the weight of information technology-related goods increased both in exports and actual imports; (2) real imports of consumer goods from East Asia increased; and (3) the United States remains Japan's largest trading partner as a single country. Due to these factors, maintaining its comparative advantage has become the priority in today's global economy. Comparative advantage is a dynamic concept. This can and does change over time. Some companies discover that they have enjoyed a comparative advantage in a product for several years only to face increasing competition as competing producers from other countries enter their markets..