The difference is that it is doing so, as a partner to ensure that the business is able to maintain successful long-term economic growth. The government does not offer subsidies or any kind of bail outs. Instead, they help companies through loans, tax breaks and other forms of assistance. This helped to contribute to the success of the Japanese auto industry by allowing executives to focus on how their organization can grow in the future. (Johnson, 1985)
Business, government and the Liberal Democratic Party in Japan
The Liberal Democratic Party helped to liberalize the relationship that the government would have with the auto industry. As it would be successful in helping Japan to eliminate protectionism; this is something that would allow Japanese cars to become more competitive in markets around the world. (Johnson, 1985) at which point, many of the large auto makers were able to build their own factories in key markets such as North America. This is significant because this liberalized policy would spread to the auto industry, as they were able to lower trade barriers and costs by producing cars in these markets.
Automobile Industry of Japan
The auto industry of Japan is known for building high quality cars and trucks that are competitively priced. This is because the industry was forced to rebuild after World War II, part of the process of rebuilding was to improve the overall quality of automobiles that were being produced. Over the course of time, the Japanese became known as experts on quality and efficiency. ("Japanese Auto Industry," 2010)
Japanese Environmental Regulations
The Japanese government is concerned about working in line with the different provisions of the Kyoto Protocol. This is because they are struggling to cut the overall amount of green houses gases that are being released into the atmosphere. The obvious concerns that the government has are different than in the U.S. because such provisions do not apply. This means that there was less emphasis on forcing automobile manufacturers to increase fuel economy standards in the United States. ("G8's Gradual Move," 2008)
Steps Japanese Automakers are Using to Address Environmental Issues
The Japanese automakers have been designing automobiles that are at the cutting edge of performance and fuel economy standards. Where, the industry has been aggressively developing mainstream hybrid cars and has been designing other cars that do not rely on the gasoline powered engine. ("Japanese Auto Industry," n.d.)
Effects of the Stimulus
The effects of the stimulus package have been disappointing. This is because it was assumed that the effect of encouraging consumers to purchase eco friendly cars would increase sales. Instead, the reaction has been muted and when the stimulus wears off later this year, there are concerns that this could cause further pain. The reason why eco friendly cars were targeted; was to help reduce the number of cars that are polluting large amounts of carbon, as the country is having trouble maintaining the Kyoto caps. (Schmidt, 2010)
Benefits of the Japanese Government Business Model
The benefit of the Japanese government to business model is that it allows businesses the ability to focus on the long-term...
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