Multinational Business in Japan and South East Asia Term Paper

Multi content Business in lacquer and South East Asia - bound Paper ExampleJapanese economic growth following the American occupation wars remarkable for its magnitude, speed, and downright relentlessness. Between 1957 and 1984, Japans gross national product change magnitude from $3.08 billion to $1.261 billion, a 42-fold jump. Moreover, Japans parsimoniousness grew at an annual rate of 9 percent per year during the lofty-growth years of the 1960s. How was this economic miracle achieved? Japan has employed a edition of developmental capitalism that allows for a much greater government role in promoting Japans international competitiveness than is typical in Anglo-American liberal capitalism. Japanese argument and government leaders started to develop and implement policies aimed at promoting national economic growth following the end of the U.S occupation of Japan in 1952. The government has positively influenced economic growth through wise macroeconomic policies. Business in Japan has maintained very close relations with the bureaucracy and politician.Japans gross national savings at its zenith reached nearly 40 percent in the post-war period. Between 1960 and 1980, the Japanese saved around 20 percent of their disposable personal income. The high level of savings of households provided banks and other financial institution with ample funds for heavy investment in the private sector. Japan has invested heavily in exploitation an effective education and training system. Companies are responsible for providing technical training to the persons they hire.Japans economic success can be explained by largely the Cold contend and the relationship between the coupled States and Japan that it produced. The cold war rivalry between the United States and the Soviet Union led the United States to shelter Japan from the vagaries of international politics, permitting the Japanese to focus their attention and resource on achieving economic growth. Advocates of free rider in which the U.S-Japan relationship has supported Japanese economic growth. The United States provided cheap technology transfer to Japan following World War II and promoted the Japanese economic build-up through its international trade policy. From an economic standpoint, the dividing line between the 1990s and the cold war years can be seen by looking at Japans real economic growth rate. In 1992, Japans economy entered a period of stagnation with economic growth rates much below the previous average. In retrospect, it is clear that the Japanese economy became dominated by a financial bubble in the 1980s and early 1990s. In May 1989, the government tightened its monetary policies to suppress the rise in the value of assets such as attain. By the end of 1990, the Tokyo stock market had fallen 38%, wiping out 300 trillion yen (the US $ 2.07 trillion) in value, and land prices dropped steeply from their speculative peak. This plunge into recession is known as the bubble econ omy. The post-bubble recession continued through the second half of the 1990s.