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Introduction
After the Second World War the country of Japan was devastated and nearly destroyed. Within the last 40 years, Japan has evolved into a strong competitive force in world markets and now has the second largest economy in the world. Although it is the size of Montana and has only one-half the population of the USA, Japan may have the number one economy in the world by the year 2010 (Kirkland, 1992, p. 60). During the 1980s, Japan emerged as a powerful international force that capitalized on global marketing opportunities. This has resulted in unprecedented growth for the country. In a recent Fortune article, author Richard Kirkland (1992) describes where Japan is in the early 1990s:
Japan's economy was less than 10 per cent the size of America's in 1960 and it is now over 60 per cent; their trade surplus has doubled in seven years despite a SO== increase in the value of its currency; it habitually spends 70 per cent to 100 per cent more of its gross domestic product on capital investment than the US and 33 per cent more on nonmilitary R&D; its household savings rate is more than three times that of America's; and when compared to the US employs 70,000 more scientists and engineers on R&D in its labs, and ten times the number of robots on its assembly lines (p. 60).
During the first six months of 1992, Japan's trade surplus, which is measured as goods pass through customs, stood at US$49.03 billion, up 52 per cent from a year earlier (Rosenberger, 1992). Japan's trade surplus rose in June for the 18th consecutive month and its exports have increased for the 25th consecutive month (Rosenberger, 1993). A combination of many different factors play a role in Japan's global success. Japan has unique business practices that are not found in many other countries. Its just-in-time (JIT) production techniques, quality circles (QCs), ringi and nenko are business practices that are deeply rooted in its business culture and have helped to shape the country's strong competitive presence in the global marketplace.
Japan also has a unique partnership between its government and businesses. The businesses in Japan have benefited from the role of supportive government policies and subsidies. Japan's powerful trading...