Question

We have seen that Japanese cultural practices and government interventions laid the groundwork for the rapid industrialization and world leading economic performance of 20th century Japan. Sometimes American businesses trying to do business in or with Japan will reform the company and the business environment that they face as "Japan Incorporated". Based on what you know about Japanese culture and Japanese government policy, is that a fair statement? What do they mean by Japan Inc?

Answer 1

There is limited participation of state in economic activities in Japan. There is broad discretionary powers were utilized by Japan government having interaction with private sector to implement official policies. There is a practise of long term planning which is the major source in functioning of Japanese economy. The reduction of government intervention will enhance new business opportunities and make domestic market more accessible. Most of the investment in manufacturing sector was under private control. There is a high saving rate can be seen in Japanese economy. This increase high range of capital accumulation. Investment led growth is the speciality of Japanese economy. Reforms in education sector through social capability for importing and adaption of foreign technology. The profit oriented economic growth was focuses by the economy. Both traditional and modern technology used by Japan with equating the rates and labour. Industrial policies introduced aim to reduce the cost of private firms to secure foreign technology which enhance the social capacity.
Japan Inc. is giving pressure to raise the payment to restore the economic growth. It also counts the cost of Brexit. It also shows the close relation between Japanese government and private sector. There is huge development of private sector can be seen after the Second World War in Japan. This tried to avoid the corruption in economy and also reduce the forces which lead to Asian financial crisis.