You will learn … Reason’s for Japan’s industrialisation Factors affecting JID JID : Japan’s...
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Transcript of You will learn … Reason’s for Japan’s industrialisation Factors affecting JID JID : Japan’s...
You will learn …Reason’s for Japan’s industrialisationFactors affecting JID
JID : Japan’s Industrial DevelopmentJID : Japan’s Industrial Development
Japan’s Industrial Development
1. Need to Industrialise2. Reasons for Japan’s Rapid
Industrial Development3. Japan’s Industrial Slowdown4. Future of Japan’s Manufacturing
Industry5. Conclusion
Japan’s Industrial Development
1. Need to IndustrialiseMountainous country; 13% arable landIndustrialisation
Creates jobs for peopleFactories need raw materials and energy to produce goodsJapan has few natural resourcesNeed to import large amounts of raw materials, mineral fuels and food – one reason for WWII
Japan’s Industrial Development
1. Need to IndustrialiseIndustrialisation
Pay for imports by exporting manufactured goodsManufacturing – main means of producing goods for export
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
1945 (end of WWII) to 1973, Japan’s manufacturing sector grew rapidly1968 : 2nd largest industrial power after the USLargest producer of steel, ships, motorcycles and cameras
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
American AidKorean War (1950-53)Government SupportInitiative of Japanese Private CompaniesQualities of the JapaneseGood Labour-Management Relations
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
American AidAmerican Aid1945-52 : US Occupation of Japan – US aided the recovery of Japan’s mnfg indGave $ and machineryTrained Japanese workersOpened US market to Japanese exportsSupported Japan’s membership in OECD
Opportunity to sell mnf goods to more countries
Japan’s Industrial Development2. Reasons for Japan’s Rapid
Industrial DevelopmentKorean WarKorean War
Japanese industries supplied billions of dollars of goods to UN forces in South KoreaEnd of war – Jap industries continued supplying materials to rebuild South KoreaWith this $ earned, J able to import raw materials and technology to rebuild its mnfg industry
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Government Support Government Support ECONOMICECONOMIC
Set up MITI in 1949 to promote JIDMITI works closely with pte companies to draw up Japan’s ind policiesEvery few years, ind policy is changes to reflect local and global needsGovt officials analyse ec info collected from all over the world
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Government Support Government Support ECONOMICECONOMIC
Results of research given to pte companies to help them decide on new products to developGovt’s aim : Japanese ind to compete successfully in int’l market
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Government Support Government Support DEFENCEDEFENCE
1947 Constitution : Forbids Japan to declare war on another countryThus Japan’s defence expd considerably less
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Government Support Government Support DEFENCEDEFENCE
Money channeled to stimulate ind growthInitially gave out low-interest loansUsed to rebuild factories destroyed in the warFunds to vital ind such as steel and coal indLater, loans given to
Encourage firms to use modern machinerySet up knowledge-intensive indCarry out R&D projects
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Government Support Government Support EDUCATIONEDUCATION
Govt invested heavily in education (edn)1947 : Edn system revisedCompulsory edn extended to 9 yearsSpecial attention : Mathematics & ScienceEquip workforce to meet needs of mnfg indResult : 1955 – 38% beyond sec edn1971 : 91%
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Government Support Government Support INFRASTRUCTUREINFRASTRUCTURE
Improved transport and communications systemRoad & railway systemsTelephone servicesPort facilities
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies1. Willingness to invest in new technology2. Adapting to changes in world market demands3. Overseas Investments4. Company Rivalry5. Co-operation Among Jap Companies
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies1. Willingness to invest in new technology
Before WWII, Jap products were imitations of Western productsAfter WWII, invested in R&D, product design and market researchImproved on borrowed ideas to make better productsInvented new productsInvestment in new products helped Japan survived two oil crises in the 1970s
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies1. Willingness to invest in new technology
Turned situation around to profit from itCaptured a large portion of world car market by producing fuel-efficient carsRobots : 1980 – 75,000 robots in Japanie 75% of world robots at work on production linesLower cost, increase productivity – successful competition
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies2. Adapting to changes in world market demands
Jap companies : Adaptable & flexibleIn shipbuilding and steel industriesStiff competition from South Korea and Brazil
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies3. Overseas Investments
Help to lower cost of productionLower costs of labourAvailability of raw materials
Keep prices of Jap products making them competitive
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies3. Overseas Investments
Also help to find market for Jap productsEg setting up factories in US and China helps Jap sell their products in these densely populated areas
IncentivesIncentives offered makes foreign countries attractive and profitable to invest in
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies3. Overseas Investments
Overcome trade barriers imposed by some countriesProtectionism : limiting importsSee p 164Jap investments accepted because it creates jobsTransfer of skills and technology
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies4. Company Rivalry
Key factor in Japan’s industrial successKeen competition to serve increasingly demanding consumersResulted in rich variety of Jap manufactured goods
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies4. Co-operation among Japanese Companies
Despite competition, they also exchange ideas and plan common strategiesEg Joint research projectsIn Japan, 2/3 of SMEs are sub-contractors of big companiesEg car ind – 65%-70% of parts produced by sub-con
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Initiative of Jap Pte CompaniesInitiative of Jap Pte Companies4. Co-operation among Japanese Companies
As quality of finished products depended on parts made by sub-con, big companies work closely with themClose consultation and loyalty help churn out high-quality products
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Qualities of the JapaneseQualities of the Japanese1. A Thifty People2. Positive Work Attitude
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Qualities of the JapaneseQualities of the Japanese1. A Thifty People
Japan – highest personal savings rate in the worldMost Japs put their $ in banksWith so much savings, banks could easily lend money to Jap inds for expansion projects1955-70, many inds borrowed $ to invest in new machinery and research for new products
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Qualities of the JapaneseQualities of the Japanese2. Positive Work Attitude
Japanese people generally hard-workingMany do not take complete entitlement of leaveTake pride in what they doWilling to learn new skillsIdentify themselves with their company, taking pride in its efficiency and products
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Qualities of the JapaneseQualities of the Japanese2. Positive Work Attitude
Many Japs involved in QCCsQCC : Small group of workers meeting regularly to solve problems at workMotivates workers, develops pride in work and foster team spiritResults : Many Jap products superior to competitors
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Qualities of the JapaneseQualities of the Japanese2. Positive Work Attitude
Improving their work cuts the time for productionJap companies often the first to introduce new productsEg correction pen and cutter knives
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Good Labour-Management Good Labour-Management RelationsRelations
Being employed in a big Jap company is like being part of the familyManagers listen to workers’ problemsWorkers made to feel as important as managersBoth wear same factory uniform in some casesCompany provides job security, training, medical care, housing loans, subsidised holidays and pay increasesIn return, workers stay committed and loyal
Japan’s Industrial Development
2. Reasons for Japan’s Rapid Industrial Development
Good Labour-Management Good Labour-Management RelationsRelations
Close relationship between workers’ union and the companyStrikes are rareThus few workdays are lost, productivity remains high and goods delivered on time