This paper first examines the conceptual framework of Japan's external economic policy. Japan's influence in international organizations is weak according to voting shares and personnel share. The bilateral relationship between Japan and the United States is reviewed. "Good gaiatsu" (foreign pressure) from United States has transformed into "bad gaiatsu" in the 1990s, and that contributed to increased trade conflicts between the two countries. Progress in yen internationalization is examined in terms of its use in trade invoicing, foreign exchange rate transactions, shares in foreign reserves among monetary authorities in the world. Yen internationalization has not progressed in the last ten years.
