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Chapter 5 Changes in Japan

Sub-Theme 2 Modernization and Transformation of China. Chapter 5 Changes in Japan. Topic 2﹕Factors for the Economic Growth since 1945. Internal Factors. Cooperation between management and labour.  Japanese employer-employee relationship. New ‘family-run’ business.

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Chapter 5 Changes in Japan

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  1. Sub-Theme 2 Modernization and Transformation of China Chapter 5 Changes in Japan Topic 2﹕Factors for the Economic Growth since 1945

  2. Internal Factors Cooperation between management and labour  Japanese employer-employee relationship • New ‘family-run’ business • Emphasized that management and labour belonged to the ‘same family’ • Lifetime employment system • Labour had a sense of responsibility and honour • They actively supported their enterprises to adopt new technology and new • management

  3. Internal Factors • Seniority-based wage system • The longer the labour served the company, the greater their benefits • would be • Enterprise union • One union for every enterprise • Weakening the overall links between worker movements

  4. Internal Factors Active roles played by the government • Establishment of legal and management systems • The legal system was relatively complete • Paid much attention to the functions of experts and academics in • decision-making • Support to small to medium companies • The small to medium companies co-existed with big enterprises • The government provided startup support to small to medium • companies, so that they could grow independently

  5. Internal Factors Provision of stable business environment • Political stability and policy consistency • The ruling Liberal Democracy Party (LDP) held many seats in the Diet • On the surface, many factions branched out from the LDP, but within • the party maintained a united motive • Economic activities were mainly run by private enterprises, state-run • enterprises and public enterprises were rare • The economy of Japan remained stable even when political changes occured

  6. External Factors International instability • Cold War﹕ • The US shifted her original policy from weakening Japan to • strengthening it • Japan was used as part of a defense against communism in East Asia • The Korean War﹕ • Japan provided war supplies to the US • The industries of Japan expanded rapidly

  7. External Factors The signing of the San Francisco Peace Treaty, 1951 • Ended the US occupation and restored independence to Japan • Japan was integrated into the political, economic and military • system of Western Europe and North America • Capital and technique were attracted from these regions into Japan, • enabling the Japanese economy to develop rapidly

  8. The End

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