The Win-win-win Globalization and Japanese Companies
December 14th, 2007 · No Comments
Author: HENG Dyna
Financial globalization is one of the key trends that have reshaped the global economy. Meanwhile, countries have become more interdependent and competitive than ever. With the surge in capital flows, the rise of developing countries, and intensified global competition, how should Japanese companies compete and thrive? I argue that synergy between Japan’s technology and human resources with the rise of financial globalization is a critical factor for Japanese companies’ success in the next stage. Three things need to accompany the synergy. First, Japan needs to leverage the international capital flows. The acquisition of capital will help Japan secure an advantageous position. Second, Japanese companies should remain to be “leading geese” by constantly strengthening their competitiveness and capability of leverage in technology, finance, and human resources. Third, by being “leading geese”, Japanese companies can reinforce their brand image and create more demand for their products through collaboration and leverage of resources in emerging economies. Japan is an export-oriented economy. The threat for the Japanese companies is not only from other countries’ companies, but also from the huge gap between its economic powers and its Asian friends’. To prop up its growth sustainability and further growth, Japan needs to help fill the gap. In this matter, I am convinced that Japanese companies can create demand and renews their brand image at the same time by contributing to the stability and poverty reduction in the region. As Japanese population began to shrink, the efficient utilization of low-wage labor and the acquisition of brainpower in developing countries will help solve the labor-force problem and help expand Japanese companies` operation, share, and brand in the global economy. I believe that the combination of Japanese technology and global capital can produce win-win-win outcomes for the participating stakeholders. It does not only benefit Japanese companies and the capitalists but also help push host countries of investment out of poverty. It is, thus, the interest of Japanese companies to realize that combination.
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