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The article discusses cases, comparisons and contrast between Japan and the rest of Asia. The leaders of Japan were aware what was going on in rest of world. They leaned of Western scientific achievements and economic changes. They knew the great new economic and military power of England, the United States, and of other Western countries. Japan's own economic organization had already undergone an evolution of lesser degree but of the same kind as that which preceded the coming of the factory system in several Occidental countries. Japan already had a fairly elaborate division of occupations, based on handicraft, both retail and wholesale. A large urban population had grown up in the castle towns, especially at the Shogun's capital in Tokyo. These economic conditions did not differ too widely from those prevailing in other parts of Asia, especially in parts of India and China. There, too, were native merchants and workers, considerable production for near and some distant sale, and facilities for loaning and transferring money. Those countries also had considerable foreign trade. The difference lied in the industrialization and modernization in Japan, which was not there in any other part of Asia.