The thesis focuses mainly on the economy of Japan, its development through history which serve as a basis for the understanding and research of the Japanese international trade, specifically in its electronics industry. Moreover, various factors have been taken into consideration in order to represent how they affect the international trade in the said industry. Through figures and examples, conclusions have been made and results have been procured. Though some factors, possibly affecting international trade, might be elusive and therefore not researched in this paper, the conclusion is that the factors such as the society, culture, politics, legislation and technology certainly have a great impact on the overall economy of Japan and with that, the international trade. It is evident that these factors affect the trade either negatively or positively, depending on how these factors are implemented but nonetheless, it has been proven that international trade is a vital part of a successful globalized economy. For the purpose of providing an example, Sony Corporation was studied and it has been concluded that for it to stay global, it is imperative to focus on technology and innovation, one of the external factors which influence international trade and which is further discussed in this paper.