While it is true that there is no perfect government, it is also true that the government is not the root of every evil. Consequently, this paper aims to examine if it is solely the government which made an exodus in the society or other factors such as active ongoing globalization was also the one influence to the exit trend. From this perspective, this paper will see how globalization affected to the exit of firms in-depth level, using the company Toyota as an example, which also mentioned in Professor Schoppa’s Race and Exit paper, and then, some Japanese citizens’ perspective will be brought so as to see their perspectives towards the government’s management.
The current market trends suggest that today, almost every product has either been shipped from a foreign country or has been manufactured in another country, or the brand is not local but a foreign brand. Origin of globalization is a long debated topic. However, the most interesting fact remains that, seeds of globalization were sown during WWII. During the Cold War, the world has roughly fallen into two categories: ones that followed democracy lined up behind the U.S. and ones that followed communism lined up behind the Soviet Union. However, as it is well known, there were many more countries that lined up behind the U.S. Despite the outnumbered countries, the U.S. did not give up strategic positions around the globe for their economic situation.
Table of Contents
1. Introduction
2. Globalization
2.1 Moving Deeper: Globalization in 1945-1970
2.2 Globalization: 1970-Present
2.3 Global Market Dominating Countries: the U.S., Europe, and Japan
3. Japanese Companies’ Globalization
4. Japanese Companies Social Involvement
5. Citizens’ Perspectives
6. Conclusion
Research Objectives and Themes
This paper investigates the multifaceted reasons behind Japanese firms relocating their operations abroad, specifically challenging the common assumption that government mismanagement is the sole driver of this trend. By analyzing historical globalization patterns and the "nonmarket strategy" of a specific automobile company (Company Z), the study aims to demonstrate that business decisions are influenced by a complex interplay of competitive factors, technological requirements, and market demand rather than political instability alone.
- The role of government policy versus economic factors in corporate relocation.
- Historical evolution of global trade from 1945 to the present.
- The application and impact of "Nonmarket Strategy" on corporate reputation.
- Comparative analysis of industrial development in the U.S., Europe, and Japan.
- Integration of local citizen perspectives on corporate social responsibility.
Excerpt from the Book
Japanese Companies’ Globalization
Under these conditions such as smart human resources, advanced technology, and industrious national environment, it is reasonable to assume that Japanese companies had no reason not to use such educated human resources and thrive in their country. Nevertheless, Mr. Schoppa intrigues an interesting view in his book that the government did not keep up with the global changes and that incompetent governance brought about the exit of Japanese companies in the society. In order to think more on his argument, this paper below examines an automobile industry in 1990s and the same company example Company Z, as used in Mr. Schoppa’s argument.
As mentioned above, it is undoubtedly that the Japanese companies were already having significant market shares in various industries in many countries, especially large markets as the U.S. and Europe. (Strange, 242) In addition, after the oil crisis, demand for fuel-efficiency cars became increasingly high. (Japanese Car Trade, Web) Given that their market is abroad and the market demand from abroad increase, why would they have to do it at home, especially if additional cost for shipping constantly occurs? Shouldn’t it be more reasonable to manufacture in other countries and transport to the regional markets? Yes definitely it is. For this phenomenon, the New York Times in 1985 well explains. According to the news paper, not only Company Z, but also other automobile companies such Nissan and Honda were all aggressively opening its manufacturing complexes seeing the increasing the demand in the market. (Holusha, The New York Times) In addition, Harvard Business Review also claims that Japanese car companies moved to the States in order to gain more power in American society to influence on American leaderships. (Markides and Berg, Harvard Business Review) Almost all the car companies and the electronic device making companies would require their manufacturing plants near to their customers so as to reduce the cost, and increase profit margins. Hence, it can be justified that the Japanese companies have shifted their manufacturing plants oversees for business reasons.
Summary of Chapters
Introduction: Outlines the scholarly consensus regarding government mismanagement in Japan and sets the stage for a critical examination of this narrative.
Globalization: Provides a historical overview of global trade, strategic industrial positioning, and the economic landscape of the U.S., Europe, and Japan.
Japanese Companies’ Globalization: Analyzes the business-driven motives for international expansion, specifically within the automobile industry, using Company Z as a case study.
Japanese Companies Social Involvement: Discusses the concept of "Nonmarket Strategy" and how companies leverage social and political engagement to maintain reputation.
Citizens’ Perspectives: Presents qualitative interviews with Nagoya residents to gauge local sentiment regarding corporate departures and the perceived role of government.
Conclusion: Synthesizes the findings, asserting that while political factors exist, corporate relocation is largely a result of global economic and strategic necessities.
Keywords
Globalization, Japanese Economy, Nonmarket Strategy, Corporate Social Responsibility, Automobile Industry, Foreign Direct Investment, Government Mismanagement, Industrial Policy, Market Expansion, Economic Strategy, Corporate Relocation, Social Engagement, Trade Policy, Manufacturing, Business Leadership.
Frequently Asked Questions
What is the core subject of this paper?
The paper examines whether the Japanese government is solely responsible for the trend of large Japanese firms relocating their manufacturing operations overseas.
What are the primary themes discussed?
Key themes include the historical development of global trade, the strategic motives behind corporate globalization, the concept of nonmarket strategy, and the social impact of firm departures.
What is the author's central research objective?
The objective is to challenge the widely held belief that government mismanagement is the primary reason for corporate exit, arguing instead for a more complex economic explanation.
Which scientific methods were utilized in this research?
The research employs a case study approach regarding "Company Z," a literature review of historical economic policies, and qualitative interviews with Japanese citizens.
What is covered in the main body of the work?
The main body covers the historical phases of globalization (1945-present), the operational shift of Japanese auto manufacturers, and the analysis of corporate social investment programs.
Which keywords best characterize this work?
Globalization, Nonmarket Strategy, Japanese Economy, Corporate Social Responsibility, and Economic Strategy are central to the text.
How does the author define "Nonmarket Strategy"?
It is defined as activities conducted by firms outside their primary marketplace—such as social and political engagement—to build goodwill and gain competitive advantage.
What do the interviews with Japanese citizens reveal?
The interviews suggest that some citizens do not share the researchers' view of government incompetence and instead view large corporations as beneficial, stable, and socially responsible entities.
Why did the author choose Company Z for the case study?
Company Z serves as a prominent example frequently cited by critics, allowing the author to contrast critical academic perspectives with actual corporate behavior and citizen sentiment.
What is the conclusion regarding the government's role?
The paper concludes that while political issues exist, the government is not the "sole onus" for corporate exits; global market competition and logistical efficiency are far more significant drivers.
- Quote paper
- Kwangsoo Jung (Author), 2017, Governmental Issues and the Exit Trend in Japan due to the Globalization, Munich, GRIN Verlag, https://www.grin.com/document/366042
