research a country that is affected by globalization
of Japan ‘s economy after globalization including positive and negative changes
At the present time , Japan still experiences the implications of the long term economic collapse which followed the bursting of the `bubble economy ‘ at the end of the 1980s . The foundation for the crisis was laid as early as the 1950-ies , when Japanese leaders were looking for the ways to develop and advance the economy . Much attention was paid to the investment in technology and development of export-oriented economy Most of the domestic product was sold abroad and the income was [banner_entry_middle]
invested in the purchase of technology , raw materials and energy sources . Thus Japan ‘s economy was developing basing on export
Globalization as defined by Harukiyo and Hook is a dynamic process of integrating the national economies into the world market (p . 87 ) Thus without a doubt , globalization of economy was advantageous to Japan ‘s economy because of its export-oriented strategy toward growth . Nowadays over 70 percent of manufactured goods from Japan are exported abroad (Harukiyo , Hook , 2001
. 143 ) On the other hand , the rapid economic growth , caused partially by globalization , led to changing domestic social system . Economic growth and modernization created a significant middle class in Japan
However , Japanese economic recession known as burst of bubble economy (Hanaoka , Mroczkowski , 1998 ) which began in 1991 , serves as a reminder that no country , and Japan in particular , gross national product (GNP ) of which is mainly derived from trade , could expect continuous economic stability . Japan ‘s persistent trade surpluses made the yen ‘s value increase in the 1980s . Highly valued yen meant that Japanese products would cost significantly more than cheaply imported consumer products . After the end of the World War II the U .S . accepted the free export from Japan to U .S . and agreed not to trade American product to Japan . However , after the end of Cold War and the collapse of the USSR in 1991 this accommodation became senseless for the U .S . and they made every effort to open Japanese market for trade . Meanwhile the yen was getting more and more expensive that in its turn made Japanese goods less and less profitable for export as their prices increased in relation to dollar . Moreover , firm position of the Japanese yen made it impossible to return loans taken by foreign companies from Japanese financial groups . Many Japanese international financial companies used to give big loans to any company , without primary investigation of that company and its credit history . Soon after that , in 1991 , the lenders realized that their borrowers would fail to return the debts due to the yen rise . In addition , corporations lost domestic protection for automobiles (especially foreign parts , consumer electronic devices etc . The effect of the economic recession is palpable up till now and this is the Japanese context for the discussion of globalization Increased foreign consumer goods ‘ penetration and higher domestic wage rates contributed to hollowing out ‘ the Japanese economy (Hanaoka Mroczkowski , 1998 ) As for the implications that globalization has had on… [banner_entry_footer]
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