Also, the Income Doubling Plan was implemented by Ikeda, who is seen to be the key figure in Japan’s rapid growth. This policy was aimed to double the income and live in the high living standard for Japanese workers from 1961 to 1970 by increasing investment from the government to both public and private businesses. Even though some problems arose such as serious pollution from heavy industrialization, this plan had greatly contributed to later half of Japanese growth with an average of more than 10 percent which brought Japan the second largest economy in the world. There is another government organization that I think which definitely contributed Japan’s economic growth. This is called Ministry of International Trade and Industry (MITI), which is regarded as the most powerful organization during the period of rapid growth.
As the author notes government imports about 90% of its wheat from abroad and similar situation was observed in South Korea. Also one of the prime determinants of demand is the income growth. According to Kazuhito Yamashita (2010), in his article, Irregular movement in Japan's rice market and futures trading claims that income elasticity’s of rice has been decreasing in developed countries despite increase the income. Thus, rice is becoming an inferior good. However, if there is growth in income in less developed countries, they will consume more rice and for these countries rice is normal food.
Korea and Vietnam were both colonized during the 20th century, and although Thailand did not experience such conditions, the fear of being colonized might have contributed to the government’s decision to create a strategy that would reform Thailand’s agricultural and other sectors (Pongsapich et al 1994). The circumstances behind Thailand’s eventual growth appear to be very different from those of South Korea: Thailand’s economic growth could be accounted for its favourable ecological conditions, and the vent-for-surplus growth that was thus made possible as more land was cultivated with the rising demand fuelled by globalization, and the improvements in the agricultural sector around the Chao Phraya Delta. Both South Korea’s and Thailand’s leaders devalued their currencies to support trade, although in the case of Thailand trade was mostly due to the demand of foreign investors and rice as the main export, as opposed to South Korea’s case in which the government encouraged domestic companies to export (Hayami 2001, Quibria
The country was used as a major military and supply base for the US and UN troops in the Asia-Pacific region due to its identity as US’s valuable anti-communist ally in East Asia and its proximity to Korea. 3This contributed greatly to its economic recovery as Japan’s production rose rapidly and companies began profit-making. The close diplomatic and trading partner relations between the two countries even enabled Japan to become a springboard from which the economic miracle could
219), 1972]. By 1932 the country saw 4 times the amount of machinery, 2 times the amount of oil, 2 times the amount of steel and a 250% increase in electricity. This expansion meant a raise of employment for workers in places of industrial production. The plan aimed to move large numbers of peasants from the countryside into the cities to work in manufacturing plants, electric power stations, and infrastructure. Around 17 million peasants moved from the countryside to look for jobs (Conquest, 1990).
Question 1 a. The rapid rise of the Japanese economy has been intertwined with extreme nationalism, paternalism, and anti-individualism (Morishima, 1982). The Japanese economy’s classification according to Morishima (1982) as an economy with collective goals through the hard work of its labor force has led to its economic advancement over other economies. In general, variations in the degree to which commercially valuable breakthrough knowledge can be captured by persons, firms, industries, and nations provide differential technological opportunities to the respective economies and can translate into sustained competitive advantage in the presence of supporting factors (Zucker & Darby, 2001). This applies for Japan, where throughout the last
How did Japan then manage to become the second largest economy in the world in the 1980s? After the war, many of the companies involved and significant amounts of the technology used during it, was shifted to employment for peaceful economic development. Japanese private companies expanded bold and audaciously. Companies like Toyota, Nissan, Isuzu, Toyo Kogyo (Mazda), and Mitsubishi all started to produce to the maximum of their abilities. An unknown motorcycle company founded by Honda Soichiro successfully entered the automobile industry in 1963.
Abstract / Executive Summary This report analyses the facts of Mitsubishi Corporation from its establishment since 1870 to the point that the company had reached its status as one of the Japanese conglomerate company in this 21st Century. The purpose of this report is to highlight the importance of how business development change effectively in relation to the country’s political economy and condition through the case study of Mitsubishi. Although we may never realised how Mitsubishi play a part in our everyday life, it nevertheless act as one of the Japanese company that influenced the Japanese society be it in the sector of machinery, automobile, financial, manufacturing, trading and even in the chemical industry. Considering how large
After World War II Toyota motors adopted this lean manufacturing system due to oil crisis in 1973 to keep their assembly line moving. The main purpose of the system is to reduce cost; the system also helps increase in turnover ratio of capital (Jones ). TPS was developed and promoted by Toyota Motors Corporation and being adopted by many Japanese companies in the aftermath of 1973 oil shock. This system focuses on elimination of waste that means elimination of unnecessary things which contributes nothing but requires investment like man, machine, or money . The Toyota family actually owned a big textile company in Japan.