Japanese Culture Factors Influenced the Disclosure of Financial Information

1978 Words Nov 3rd, 2010 8 Pages
Topic 4

Japanese culture factors influenced the disclosure of financial information

Introduction
Japan is an unique oriental country in many aspects, especially in politics and economy, both western practices and traditional nationalism are coexisted in this country. The period 1890-1940 was just followed the Meiji restoration, and was typical in the history of Japan, at that time, Japan was on the way from a feudal country to a capitalistic country, called modernization. Many western practices were being more and more adopted, however, at the same time, traditional rules still had strong influences in Japan. Under this background, this report will discuss the Japanese cultural factors during 1890-1940 that influenced the disclosure
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Hand in hand, the zaibatsu and government guided the nation, borrowing technology from the West. Japan gradually took control of much of Asia's market for manufactured goods, beginning with textiles. The economy structure became very mercantilist, importing raw materials and exporting finished products — a reflection of Japan's relative poverty in raw materials.[2]
Japan emerged from the Tokugawa-Meiji transition as the first Asian industrialized nation. Domestic commercial activities and limited foreign trade had met the demands for material culture in the Tokugawa period, but the modernized Meiji era had radically different requirements. From the beginning, the Meiji rulers embraced the concept of a market economy and adopted British and North American forms of free enterprise capitalism. The private sector — in a nation blessed with an abundance of aggressive entrepreneurs — welcomed such change.
Economic reforms included a unified modern currency based on the yen, banking, commercial and tax laws, stock exchanges, and a communications network. Establishment of a modern institutional framework conducive to an advanced capitalist economy took time but was completed by the 1890s. By this time, the government had largely relinquished direct control of the modernization process, primarily for budgetary reasons. Many of the former daimyo, whose pensions had been paid in a lump sum, benefited greatly…