As far as the Japanese economy is concerned, some high tech and manufacturing areas (I stress "some") are very competitive. But, at the same time, many other areas in the economy are very inefficient due to red tapes, excessive regulations, and protectionism.
If you lived and worked in the industrialized country such as US and other western countries, you should be able to feel this right away by the seat of your pants. Examples are: transportation, distribution, domestic service providers, retailing, pharmaceutical, medical equipment, IT, aerospace, and etc.Partly agree. But I want to know about "other areas" specifically.
Examples are: transportation, distribution, domestic service providers, retailing, pharmaceutical, medical equipment, IT, aerospace, and etc.
The service sector is close to 3/4 of the GDP.
You have not considered the regulatory issues and Japan-specific business cultures into your argument. If the Japanese retailers try to enter USA or other western countries, I don't think their model will work there (there are simply too many middlemen in the supply chain in the domestic Japanese markets). I am not sure if you have the actual experience in living and working outside Japan (from your previous posts, I guess not). But, from what I can see, there are many inefficiency in Japan.Theoretically US/European service industry is superior to the Japanese one. But once they face head-to-head competition, the theory is not likely correct.
from what I can see, there are many inefficiency in Japan.
You have not considered the regulatory issues and Japan-specific business cultures into your argument. If the Japanese retailers try to enter USA or other western countries, I don't think their model will work there (there are simply too many middlemen in the supply chain in the domestic Japanese markets). I am not sure if you have the actual experience in living and working outside Japan (from your previous posts, I guess not). But, from what I can see, there are many inefficiency in Japan.
That's exactly the point. You need to look at the system wide condition. The Japanese regulatory regimes and business cultures (nemawashi, stock ownerships among Japanese companies, and etc) contribute to the inefficiency in Japan.IF they implant US-SCM in Japan + utilize its Global sourcing network, they must been enjoying success in the Japanese market Today.
That's exactly the point. You need to look at the system wide condition. The Japanese regulatory regimes and business cultures (nemawashi, stock ownerships among Japanese companies, and etc) contribute to the inefficiency in Japan.
The economy does not exist in a vacuum as there is no such thing as laissez-faire capitalism in reality. The companies and individuals compete within the confines of the rules and regulatory regimes in general.I think comparison based on different regulatory system is meaningless.
Why is it so difficult for you to accept the export business has been the driving force of Japanese economy? Japan's domestic business is no growth business, practically speaking (I doubt it will grow that much in the future). The trade surplus (which helps Japan accumulate the foreign reserve) helps it build the wealth (The repatriated revenues from Japan's overseas ventures also contribute to Japan-based corporations' bottom line).Are there any source for proving that Japan is much dependent on exports ?
I think there is no better version of capitalism per se. Current wealthy industrialized countries (including Japan) follow the certain steps to build their industrial base and have an access to the market which can buy their products at the initial phase of industrialization. So, there is nothing too special about the Japanese model.This thread has become a bit like a pissing contest, who has a better version of capitalism.
Why is it so difficult for you to accept the export business has been the driving force of Japanese economy? Japan's domestic business is no growth business, practically speaking (I doubt it will grow that much in the future). The trade surplus (which helps Japan accumulate the foreign reserve) helps it build the wealth (The repatriated revenues from Japan's overseas ventures also contribute to Japan-based corporations' bottom line).
A simple econometric measurement (ie. export ratio of Japan's GDP) does not tell you the qualitative data. Example: For building wealth, making and selling computer chips are more valuable than potato chips, regardless of the size of each market.
Japan has followed the protectionist capitalism practiced by England, continental Europe, and USA during their early stages of industrialization. After those wealthy countries achieved the advanced state of industrialization, they actively promoted the free trade principle. If you look at the current rich and poor countries, you can see clearly traditionally poor countries stay poor even with the financial aids by the wealthy countries.
Of course, almost all countries do some import and/or export (INCLUDING North Korea--there are some reports about some nuclear and rocket technology exchange with other rogue states). The question is how important those international trades are for those other countries.think ALL countries, except North Korea or similar, are dependent on trade (import/export) in today's global economy.
Please read the books and search the web or wikipedia. And, please synthesize that info by yourselfSo... Are there any source?
That means Citi found a suckXr who wants to acquire the asset in the current turbulent economic environment.Citigroup To Sell Local Trust Banking Unit To MUFG Firm
According to Nikkei, Citigroup Inc. decided to sell its Japanese trust banking unit NikkoCiti Trust & Banking Corp. to Mitsubishi UFJ Trust and Banking Corp., which apparently made the highest bid....
That means Citi found a suckXr who wants to acquire the asset in the current turbulent economic environment.Jokes aside, Mitsu needs the intellectual properties of Nikko Citi. Japanese banks have not been known for M&A and other financial expertise.
Are you aware the Japanese company bought that piece of the service sector from an American company? Japanese finance sectors tend to look inward (recent purchases are the foreign companies' Japan operations). Japanese domestic business is a dead end business (the market is pretty much matured and there is not much growth potential. As it has fewer eligible workers (and more older workers or people), Japan's markets would shrink. There is a high probability that more dynamic countries will surpass Japan over several decades.Either way, it is a result of so-called "competitive" service sector of USA.
Are you aware the Japanese company bought that piece of the service sector from an American company? Japanese finance sectors tend to look inward (recent purchases are the foreign companies' Japan operations). Japanese domestic business is a dead end business (the market is pretty much matured and there is not much growth potential. As it has fewer eligible workers (and more older workers or people), Japan's markets would shrink. There is a high probability that more dynamic countries will surpass Japan over several decades.
Your comment does not make any sense. Maybe this is a language barrier. Please read my comment again (if you have a difficulty with English, please grab your dictionary). Or, I am afraid you may lack a critical thinking skill.You are contradicting yourself, aren't you? You are doing business in Japan, where you said the domestic business is dead end, while you said there are more dynamic countries that will surpass Japan over several decades...
A US company allows you to continue to stay in such a sluggish market ?
The International Monetary Fund is finalizing a $100 billion loan from Japan and is considering issuing bonds for the first time in its history, as part of an effort to double the financial resources it has to fight the deepening global recession...............
That J-gov is loaning $100 billion is a slap-in-the-face to the tax payers in Japan, given the deepening economic downward spiral to the bottomless pit. It should cut taxes (which I benefitIMF Considers Issuing Bonds to Raise Money
IMF Considers Issuing Bonds to Raise Money