Compare and Contrast Business Systems in Japan and China. Answer with Reference to Relevant Theories and Use Comparative Country and/or Corporate Examples.

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Compare and contrast business systems in Japan and China. Answer with reference to relevant theories and use comparative country and/or corporate examples.

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To understand the differences between Japanese and Chinese business systems we must first understand the meaning of a “business system”. A “business system” is a “methodical procedure or process, used as a delivery mechanism for providing specific goods or services to customers in a well defined market” (1). Unlike the Eastern ways of doing business, Asian-Pacific business is heavily influenced by religion and the ways of society plays an important role in the approach they take on doing business. Before we compare and contrast two leading countries, it is
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Therefore it seems that Japanese business is like a family, employing their workers for life in a closed community of loyal, trusted and harmonious beliefs.

Economy:

Japan enjoyed a period of high productive development since the end of World War II. It boomed in the late 60’s and 70’s and then came to an immense halt in the 80’s and 90’s and still vacillating today. Since the beginning of 60’s, Japans growth has been called a “post-war economic miracle” (11). This is because, in that time, they had an “average growth rate of 10% in the 1960s, 5% in the 1970s, and 4% in the 1980s” (11). In this time, according to Richard Katz in his book “Japan: The System That Soured” the Japanese government applied a “developing country strategy” which involved very low interest rates so that Japanese companies, that during that time, needed money to start up their businesses, could take out loans at a extraordinarily cheap price (10). They also used a system called WAT. This system was “a peer-to-peer complementary currency system” (12) which would “allow for small businesses to issue IOUs (called WAT-ticket) to their suppliers” (12). This allowed for a “high-cost structure” (10) where “efficient manufacturers and inefficient service-related sectors” were able to “co-exist” (10).
Has the government played a role in this success and does it

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