First of as Japan is an island nation set on an archipelago.
The area on which they could grow food was limited but thanks to plenty of rain
and an agreeable climate they made the best of what they had. Unfortunately,
the frequent earthquakes can also cause tsunamis and cause huge devastation. In cultural
and political sense this geographic location helped Japan protect their
nation and also helped them preserve and foster their cultural identity while
the sea routes allowed for good trading opportunities.
Because traditional economies are characterized as being primarily agricultural, they are prone to stagnation since they rely heavily on weather, which can be unpredictable and pragmatic.