How Japan is Contributing to Globalization Essay

Globalization is one of the most important aspects of modern society affecting all spheres of life. Globalization involves public life, politics, economy, culture and social development. Globalization and the initiation of new technologies have significantly changed the way business, government and society are organized. Japan’s presence has loomed large in the Asia-Pacific region after World War II. Population density and geographic isolation are the two crucial factors that cannot be overstated when discussing Japan. Most of Japan’s land area is mountainous; and therefore, the residential area represents only 3%, and the industrial area is only 1. 4 %. However, Japan still generates an astounding 14% of the world’s GNP (Harukiyo, Hook, 2001). One of the key driving forces behind these changes is a new business model. Japan has made a great contribution to globalization process being a political and economic leader in the Asia-Pacific region. To be successful in global competition, firms become a triad power, establishing strong competitive position in all three parts. Ohmae (1985) views the world market as being composed of three major parts: the USA, Japan, and Europe. Ohmae (1995) also argues that the key to global success is the deliberate â€Å"insideration† of functional strengths of Japan economic system. He considers â€Å"equidistance† the critical requirement of a global strategy: seeing globally, thinking globally, and acting globally. In this process, Japan plays a core role as an economic and political leader controlling the new emerging order. Ohmae argued that successful global companies had to be equally strong in Japan, Western Europe, and the United States. These three regions, which Ohmae collectively called the Triad, represented the dominant economic centers of the world. Today, fully 75 % of world income as measured by GNP is located in the Triad. Ohmae has revised his view of the world; in the expanded Triad, the Japanese leg encompasses the entire Pacific region; the American leg includes Canada and Mexico; and the boundary in Europe is moving eastward. Acer Inc. provides a perfect illustration of a company with a well-balanced revenue stream; one-third of the company’s sales of computers and related equipment are in Asia, one-third in North America, and another 20 % are in Europe. Japan is responsive to local market conditions. The strategic imperative means the efficient global use of good marketing ideas rather than standardization, and an organization structure which encourages transfer of information from Japan to other countries. Global operations are tailored to maximize efficiency in concept development and effectiveness in local market delivery (Befu, Guichard-Anguis, 2001). Japanese multinational corporations which treat individual country markets separately are likely to disappear and be replaced by global corporations which sell standardized products the same way everywhere in the world. A major source of competitive advantage has become the ability to produce high-quality products at lowest cost, since global consumers will sacrifice their idiosyncratic preferences for the high-quality but low-priced products Globalization and the initiation of new technologies have significantly changed the way business, government and society are organized. One of the key driving forces behind these changes is a new business model. Host government regulations/incentives, as well as other environmental forces, can drive globalization. Similarity of tariff barriers, product standards, marketing regulations, and incentives for foreign direct investment can serve as stimuli for globalization.. Japan places more emphasis on market growth and penetration and in these aspects they were definite leaders. Japan has the benefit of a large domestic market but it appears that they also benefit from their emphasis on improvement in product quality and productivity. According to Yang (1995): â€Å"In Japanese business interactions, voice came as the counterpart of trust. Such participation not only provided information exchange but also moderated the coercive power inherent in the hierarchical command structure† (69). The competitiveness in the globalizing world is based on some of the nation’s sectors, where the companies experienced conditions in their home market that induced them to develop the â€Å"right† competencies to compete internationally. Many economists underline the great influence of Japanese policies on the World Trade Organization, â€Å"governmental subsidization of foreign direct investment, and the integration of Japanese production facilities in East Asia† (Maclachlan, 2004). Technological advances are also considered major drivers of globalization. Japanese technological innovations and leadership in IT industry influence global business and science. Japan plays a crucial role in globalization of automotive and IT industries. Communication and transportation technology makes integrated global operations feasible and desirable. Industries with high technology intensity are particularly conducive to standardized marketing approaches (Yang, 1995). Among market factors which can drive globalization are: emergence of global customers, homogenization of consumer needs and wants, existence of global marketing channels, and transferability of marketing practices. Political leadership allows Japan influence foreign relations and political situation. Following Harukiyo and Hook (2001): â€Å"The period of building another modern Japan: the history of post-war Japan colored by high-speed economic development as well by the shrunken role of Japan in world politics. This feature of post-war Japan can be summarized as the economic giant, political pigmy† (19). From the point of view of some scholars in economic-politics, globalization is the result of the capitalism dominance. Yip (1995) reinforces this idea saying that it is a new capitalism cycle where production has become transnational. To other authors, globalization is related to the increasing obsolescence of the nation-state system (Ohmae, 1995). Ohmae (1995) proposes that the more natural model is the â€Å"region-state†, an economic area defined independently of the national borders. To survive and prosper in the global marketplace, Japanese businesses have responded to the industry imperatives. Japan’s contribution to globalization can be explained as: global market participation; product standardization; concentration of value-adding activities; uniform marketing; and integrative competitive moves. Also, Japan’s global strategy has matched the globalization potential as defined by the cost, market, government, and competitive environments. The strategic imperative of Japan is to concentrate value-added activities to exploit factor cost differentials and extend competitive advantages by coordinating interdependencies among markets. Hence, success demands achieving integration of the firm’s competitive position across markets. Japan has a great influence on cultural and social life of global society. Film industry and animated films influence tastes and preferences of millions of people around the globe. Feature-length animated films and manga (an illustrated publications in comic book format) become a part of the global culture. Japanese food consumption patterns penetrated many Europeans countries and America. Traditional food is influence4d by sophisticated cuisine highly customized to the change of seasons. Modern Japanese cuisine includes many seafood dishes with fresh ingredients (sushi), natto and soy sauce. Over the last 50 years, Japanese food culture becomes global and has been adopted by other cultures. Befu and Guichard-Anguis (2001) call this phenomenon cultural diffusion underlining the role and impact of Japanese cultural norms on the ‘outside’ world. For instance, the popularity and â€Å"the success of contemporary Japanese fine art photography in American art museums and galleries† (131) underline the importance and influence on Japanese culture on global society. The ideas and values of the Japanese people influenced perception of the self and religious values of other nations (Hall, Hall 1990). Morals and traditions of the Japanese culture create a strict, unwritten code of essential rules followed by generations of Americans and Europeans as their personal religion which helps to control social life and social order. Many countries adopted traditional Japanese approaches to management including TQM and Quality Circles are a core philosophy of a firm (Hall and Hall, 1990). Introducing Japanese techniques is proving difficult because it cuts across cultural norms. The entrepreneurial spirit of Japanese firms is encouraged as the tendency for individuals to compete against each other frequently gives rise to the development of new ideas. Employee relations is another sphere of Japanese management principles. Yang (1995) explains that: â€Å"Japanese competition has forced the other advanced national economies to investigate seriously and adopt many of the practices which the Japanese have developed† (69). Key benefits include economies of scale in marketing and production, economies of scope, efficiencies in sourcing and transportation, and synergies in other value-adding activities. The response to competitive challenge is another major driver of globalization. In sum, the differences in economic conditions, national values and culture among nations created different opportunities for the development of industries all over the world. Japan has influenced to the competitive pressure by leveraging its competitive position across markets, and by seeking integrated operations. The basic sphere of impact is the international economic and social system, i. e. global manufacture, national economies and the world market. Japan contributes to globalization through investments, access to quality products and technologies, and reciprocal access to foreign markets and managerial development. Unique philosophy and cultural norms of Japanese are also penetrated into other countries shaping behavior of people and perception of the world. From the perspective of business, interest in globalization centers on two major facets: the globalization of markets and the globalization of production and the supply chain. As a member of many international organizations, Japan determines and influences political and economic relations in the Asia-Pacific region and has a great impact on the world order. References 1. Befu, H. , Guichard-Anguis, S. (2001). Globalizing Japan: Ethnography of the Japanese Presence in Asia, Europe, and America. Routledge. 2. Hall, E. T. , Hall, M. R. (1990). Hidden Differences: Doing Business with the Japanese Anchor. 3. Harukiyo, H. , Hook, G. D. (2001). The Political Economy of Japanese Globalization. Routledge.