• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The role of competition in industrial history of Japan

Extracts from this document...

Introduction

THE ROLE OF COMPETITION IN INDUSTRIAL HISTORY OF JAPAN Japan has the most outstanding industrial development among Asian countries. It can be compared to the development in many big countries such as Germany, Britain, France and United States. However, the development of industry in Japan has its own uniqueness. Japan industrial development was mainly caused by its decision of not to be intruded by Western. In order to do that, Japan realized that they had to be more Western. When speaking about the industrial history of Japan, one of the most important things to be considered is the role of competition. The competition has become aroused especially in the postwar era of Japan. In a market economy, as commonly acknowledged, there should be individual freedom, and an acceptable economic performance could be reached by market mechanism which adjusts individual activities. Consequently, government should put into practice policies which encourage competition among companies to improve the benefit for consumers, in this case all the citizens. However, in contrast to the above statement, the postwar Japan industrial policy tends to be in that of controlled economy, rather than to a more competitive market economy. ...read more.

Middle

Furthermore, in those ages, the Antimonopoly Act was amended to relax. Especially, the amendment in 1953 permitted the two types of cartel: rationalization cartel and depression cartel. In this respect, it is also recognized that the government in those days intended to eliminate fruitless or excessive competition. The priority production system aimed at the entirety of steel and coal mining industries for protection and promotion, but in the industry rationalization policy and the protection and promotion measures in the 1950s, the superior enterprise in the said industries became the subject of preferential measures. The second phase is the policies in 1960s. As the competition with foreign enterprises became the real issue, the opinion that "we must strengthen the international competitiveness by eliminating the domestic excessive competition and enlarging size of business" became more powerful, and then industrial reorganization was attempted by promoting mergers. Actually, big mergers occurred in the 1960s. There is no doubt that the merger supporting measures by the government really promoted mergers, but it is interesting that the private enterprises had reluctance in accepting the way of government leading style. This is nothing else but the appearance of this fact, which the Bill on Extraordinary Measures for the Promotion of Specific Industry was discarded. ...read more.

Conclusion

The FTC has increased its formal enforcement activity, strengthened its guidelines about horizontal and vertical issues, modernized its merger standards, added to its staff and budget, and raised its profile in advising about competition issues at other ministries. Despite the recent successes, competition policy remains an awkward import into Japan's business and government culture, and its long-term status remains uncertain. A recent analysis by Japanese and British scholars describes the FTC as "a unique and vulnerable agency administering deeply unpopular laws based on a widely rejected model of market competition," playing an "ambiguous and difficult" role, with a "huge gap" between its theoretical powers and its actual practice. The gap is closing, but "the renaissance of competition policy in Japan is recent, partial, and far from fully secure."4 1 Iyori, H. and Uesugi, A. (1994), The Antimonopoly Laws and Policies of Japan, New York, pp. 30-52. 2 Noguchi, Y. (1995) 1940 nen Taisei (The 1940's System), Toyo Keizai Sinpo-sha, Tokyo, Japan. 3 OECD Review, Regulatory Reform in Japan: The Role of Competition Policy in Regulatory Reform, July, 23, 1999 4 Sanekata, K. and Wilks, S. (1996), "The Fair Trade Commission and the Enforcement of Competition Policy in Japan," in Comparative Competition Policy: National Institutions in a Global Market, G. B. Doern and S. Wilks, ed., pp. 102, Oxford. ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. CRITICALLY EVALUATE THE THEORIES OF ABSOLUTE ADVANTAGE (ADAM SMITH MODEL) AND COMPARATIVE ADVANTAGE (DAVID ...

    The higher the level of economic integration, the more likely the concerned elements are to trade. The transactional capacity is consequently facilitated with the development of transportation networks and the adjustment of trade flows that follows increased integration. International trade, both in terms of value and tonnage, has been a growing trend in the global economy.

  2. Why was Britain the First Industrial Nation?

    The second phase, in 1790s has been dubbed 'Canal Mania' with the completion of several important canals and the setting-up of 51 new schemes. By 1820, the canal network linking all the major centres of industrial production was largely completed.

  1. Globalisation of GAP

    If the business is not familiar with the language of the new market it can cause problems in communicating with employee's directors and employees. This could then lead to problems in making decisions and implementing any changes. Also setting up in a new market can have very high start up costs.

  2. HOW DID JAPAN ACHIEVE INTERNATIONAL COMPETITIVENESS IN TEXTILE INDUSTRY? EXPLAIN THE ROLE OF THE ...

    A characteristic of the Japan's textile market structure is the existence of a large number of inefficiently small manufacturing establishments, particularly in spinning, weaving and knitting mills. Countries generally develop through structural change in response to shifts in comparative advantage, beginning with specialization in primary products and advancing to single

  1. japanese industrial policy

    The economic effects of foreign exchange rationing in Japan are quite difficult to know precisely. The policy certainly protected industries such as coal mining, agriculture and textiles, in which Japan had lost its comparative advantage, thus, reduced Japan's gains from foreign trade.

  2. GOld History Timeline

    1717 Isaac Newton, Master of the London Mint, sets price of gold that lasts for 200 years. 1787 First US gold coin is struck by Ephraim Brasher, a goldsmith. 1792 The Coinage Act places the young United Sates on a bimetallic silver/gold standard, defining the U.S.

  1. Chinese Economic Reform

    These feelings were manifested in denying foreign businessmen long-term, multiple entry visas, resisting "increased foreign economic contacts" and alteration of current ways of doing things, and disinclination to become involved in government-to-government loans and joint ventures lest Chinese become exploited in some way (Nathan 53-55).

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    Commercial society revolves around what David Hume calls a "spirit of industry", a psychological force which injects a vitality and dynamism into public affairs. This stands a world apart from the vegetative and parochial societies of old. Its engine is individual choice in the selection of means and ends, i.e.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work