Final answer:
Japan relies on trading companies for its external trade largely due to a traditional aversion to direct exports, as well as the need to protect cultural industries like rice production and to manage its role as a manufacturing center.
Step-by-step explanation:
Trading companies play an important role in Japan's external trade because Japan has a traditional aversion to direct exports. Historically, Japan was a "closed country," and trade was limited to specific ports like Nagasaki. Even though unofficial contacts persisted, Japan has maintained certain traditions in trade, one of which is the use of trading companies or intermediaries to handle international transactions. These companies have become integral in managing Japan's external trade activities, establishing connections with overseas markets, and navigating complex international trade agreements.
Furthermore, Japan's economic strategies have often involved protecting national industries such as rice production, which is crucial to its cultural identity. Trading companies help facilitate this by managing imports and exports in a manner that supports domestic industries. The use of trading companies also aligns with Japan's development into a world manufacturing center, where it has historically taken advantage of peripheral countries for labor and resources. In essence, trading companies have provided a streamlined and effective framework for Japan to engage with the global market while maintaining its economic and cultural interests.