Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / BENDIX CORPORATION FOREIGN DIRECT INVESTMENT Proponents of the notion of “Japanese-style c...

BENDIX CORPORATION FOREIGN DIRECT INVESTMENT Proponents of the notion of “Japanese-style capitalism” in the Japanese government can argue that they did their part for liberalization and cannot be

BENDIX CORPORATION FOREIGN DIRECT INVESTMENT

Proponents of the notion of “Japanese-style capitalism” in
the Japanese government can argue that they did their part for liberalization
and cannot be held responsible for private-sector outcomes. Meanwhile, pro-
ponents of results-oriented policies (ROPs) can point to yet another example
of how the removal of one barrier led to the formation of a second barrier.
While agreeing with the basic conjecture that high levels of corporate own-
ership may work to deter takeovers in Japan, the argument presented here sug-
gests that it is not cultural or institutional factors that produce corporate groups
and high levels of stable shareholding but rather conventional government pol-icy. The focus on “conventional” policies is important. One does not need to
rely on government encouragement and other nonbinding mechanisms of Japa-
nese industrial policy in order to understand the rise of Japanese corporate
groups. The incentives to form these groups can, to a large degree, be traced
to tax, regulatory, and other policies that are conventional in the sense that their
effects can readily be understood within a standard neoclassical economic par-
adigm.

Jul 31 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions