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By J. Abegglen

Japan's financial system and companies are coming into this century with new administration structures yet their values unchanged. Drawing at the author's research of the Fifties, monetary structures, team of workers administration tools, function of the company and R&D functions are re-assessed to supply a entire research of Japan's monetary and commercial alterations.

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They are low-cost workers with no tea breaks, unions, sick leaves, or holidays. (2) The current retirement age of 60 years is nonsense in a country with the longest life expectancies in the world. Continue current plans to extend the working age – and defer pension startups. (3) Women can be the ready source of well over an additional million workers simply by providing adequate child-care facilities, maternity leaves, and the like. (4) China and the rest of East Asia have masses of inexpensive workers now unemployed.

The move out of hardware manufacturing is reinforced by comparative costs. President Nishigaki said, Since labor costs in China are one-thirtieth those in Japan, we aim to use China for production and parts procurement. We transferred our entire PC motherboard production to China last year. We will continue to develop and produce cutting edge products in Japan, but we have no choice but to consign mass production to other countries. Now in addition to its own production in China, NEC has begun sourcing products made by Chinese companies and is now selling routers and other devices for Internet access made by Huawei Technologies, China’s largest communications device maker into the Japanese and other Asian markets.

The steel industry has been the prototype of Japan’s industrialization. Its successes – and subsequent problems – display many of the special features of Japanese industrial structure. Government played a major role in much of the industry’s history. Foreign technology was eagerly sought and very rapidly introduced. Postwar growth of the industry took output from virtually nothing to world leadership. Market share patterns and pricing practices invited accusations of cartel arrangements. And US complaints of unfair trade practices by Japan’s steel producers have, for well over 30 years, been a standard feature of the steel industry landscape, from “export restraints” of the late 1960s to the punitive Bush tariffs on steel imports of the past few years.

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