JAPAN’S INDUSTRIAL DEVELOPMENT

Reasons for Japan’s Rapid Development

American Aid
- Money and machinery, along with training were provided
- The USA opened its market to Japanese exports
- Helped Japan become a member of the Organization for Economic Cooperation and Development

Korean War
- Japan industries supplied billions of dollars of goods to the United Nations forces stationed in South Korea
- Supplied materials to rebuild South Korea

Government Support
- Works closely with private companies to draw up industrial policy
- Changes industrial policy every few years to adjust to local and global needs
- Analysis of information collected from all over the world on new technology, products, markets and competition
- Japanese government spent far less on defense after world war II
- Government invested heavily in education

Initiativeness of Japanese Private Companies
- Willingness to invest in new technology
- Constantly upgrading of machinery and production systems
- Engagement in activities such as Research and Development, product design and market research
- Adapting to changes in world market demands
- Overseas investments (markets and incentives)
- Company rivalry
- Cooperation among Japanese companies (exchange of ideas and planning of strategies

Qualities of the Japanese
- Thrifty people
- Positive work attitude
- Keen on personal improvement

Good Labor-Management Relations
- Companies function like a second home
- Employers are concerned about employee welfare

JAPAN’S INDUSTRIAL SLOWDOWN

Rising importance of service sector

Change in work attitude
- more time off and more pay
- less commitment

Asian currency crisis
- weaker currency result in Japanese products becoming less affordable
- lack of competition thereof

Global competition
- countries like Taiwan, Hong Kong, South Korea