Nobody downloaded yet

Similarities and differences between japan's keiretsu and south korea's chaebol - Essay Example

Comments (0) Cite this document
Summary
The economy of Japan was dominated by the zaibatsu, which were large groups of industries. Zaibatsu’s were large financial and industrial business enterprises in the cement manufacturing, shipbuilding, paper, mining, insurance, and banking sectors…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Similarities and differences between japans keiretsu and south koreas chaebol
Read TextPreview

Extract of sample "Similarities and differences between japan's keiretsu and south korea's chaebol"

Download file to see previous pages These enterprises were established by the Meiji government in the late nineteenth century, as a way to invigorate Japan’s industrialization. Therefore, the main reason for the formation of these business enterprises was to respond to failures in the market. Companies owned by these zaibatsu’s were vertically organized and owned by families and sometimes, holding companies. According to Rosati (1993), trading companies and banks were the most powerful industries among the zaibatsu. This is because they controlled the distribution of goods and operations among the zaibatsu’s. The zaibatsu were abolished at the end of the Second World War by the Allied Occupation Forces, when their shares were allocated to the Japanese public, in order to promote competition and equality. Rosati points out that “during this period, however, the private sector had little funding capacity, and corporations among themselves unable to raise the capital they needed” (1993, p. 85). It was during this time that the practice of raising funds through loans from banks was embraced. Due to the low prices of shares and accumulation of capital in the private sector, corporations were exposed to acquisitions. This was further compounded by the fact that the stock owning capacity of banks was limited by the 1947 Antimonopoly Act (Rosati, 1993). Consequently, corporations had to invest somewhat equal amounts of capital among themselves to create stability among shareholders although there was no physical exchange of the money. In the 1960s, Japan joined the Organization for Economic Cooperation and Development (OECD) and this led to a relaxation of capital transaction policies by the government. Since the owners of the corporations feared being taken over by foreign investors, they conducted cross ownership that brought back the links that had existed among zaibatsu groups prior to the Second World War and this led to the formation of Keiretsu groups. Keiretsu groups were very significant in rejuvenating the economy of Japan after the Second World War. Small industries in Japan were able to develop, despite the fact that Japan’s economy was detached for the world markets and highly monitored. Examples of keiretsus include Mitsui and Mitsubishi. South Korea's Chaebols: Origins and Features Chaebols were established by the Japanese colonial rule in Korea during the 1920s and 1930s. In fact, Korea’s Chaebols were formed in a similar way to the Japanese keiretsus. The main reason for the establishment of Chaebols was so that Japan could benefit from Korea’s economic development. The establishment of chaebols began when Japan set up privately owned businesses in Korea, but strictly controlled business procedures, license applications, and credit. Japanese rule in Korea eventually came to an end, and this gave the Korean’s freedom to adjust the business procedures and processes of the Chaebols. Dubois (2004) points out that “the effort was coordinated by president Park Chung Hee, the president of South Korea from 1961 until his assassination in 1976” (p. 42). Under the concept of chaebols, conglomerates usually controlled by a family were formed under a sole holding company. Each company held another company’s shares and through this, they were all interlinked. The chaebols however had no financial institutions and this required financial support from the government, since South Korea’s banks are joined together and controlled by the government. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Similarities and differences between japan's keiretsu and south Essay”, n.d.)
Retrieved de https://studentshare.org/business/1478496-what-are-the-similarities-and-differences-between
(Similarities and Differences Between japan'S Keiretsu and South Essay)
https://studentshare.org/business/1478496-what-are-the-similarities-and-differences-between.
“Similarities and Differences Between japan'S Keiretsu and South Essay”, n.d. https://studentshare.org/business/1478496-what-are-the-similarities-and-differences-between.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Similarities and differences between japan's keiretsu and south korea's chaebol

Differences between Japan and China

..., 2007). In other words, Japan gives more priority to quality whereas China gives more priority to quantity. Thus Japanese goods are expensive because of superior quality whereas Chinese goods are cheaper because of inferior quality. In the economic world or consumer world, Japan stands as a sign of quality whereas China stands as a sign of quantity. “Chinese people are more open. Japanese don’t really say anything” (What are the key cultural differences between China and Japan?, 2010). Culturally, both China and Japan have lot of similarities; however, Chinese people are more open minded than the Japanese people....
1 Pages(250 words)Essay

S

...of the United Nations: The Tension between Intergovernmentalism and Transnationalism. Global Governance, 8 (1): 53+. Culpeper, Roy. (2002) Approaches to Globalisation and Inequality within the International System. The North-South Institute, Ottawa: United Nations Research Institute for Social Development. Farmer, Richard N. and Richman, Barry M. (1966). International Business: An Operational Theory. Homewood, IL: Richard D. Irwin. p.13. Fieleke, Norman S. (1994). The International Monetary Fund 50 Years after Bretton Woods. New England Economic Review: 17+ Friedrichs, David O. and Friedrichs, Jessica. (2002). The World Bank and Crimes of Globalization: A Case Study. Social Justice:...
12 Pages(3000 words)Essay

Christianity between South Korea and Japan

...the first to arrive in Korea in 1784, followed by the American Presbyterians and Methodists Protestant missionaries in 1884. The missionaries used invaluable evangelistic tools during the first two decades of their arrival. For example, they established new mission stations, small hospitals and new schools in many parts of Korea. They also translated the Bible and other literary works into the Korean language. Since then, Christianity has become the largest religion in South Korea after Buddhism. South Korea is different from Japan, a neighboring country with strikingly similar social...
8 Pages(2000 words)Essay

The South Korean Chaebol System

...that chaebol performed better than independent Korean firms. (Haggard, Lim and Kim 2003, p. 113) Like the keiretsu and, its predecessor, the zaibatsu of Japan, this Asian economic model has facilitated and driven the explosion of growth, unparalleled among countries across the globe regardless of their category. The reason for this is simple, there was an economic system characterized by a partnership between a strong government and carefully selected successful entrepreneurs that has brought about increased productivity, innovation and sustained ambition. Such system worked as manifested by the rapid industrialization and wealth generation in South...
8 Pages(2000 words)Essay

Modernism and Modernization between Japan and Korea

...East Asian Japan Civilization Fall 2010 Introduction Modernism and modernization involves an in-depth analysis on various aspects of three countries with a lucid presentation on song china, Josean Korea and Meiji Japan. At the outset this treatise has dwelt on certain parameters that embrace the country of Korea especially Josean Korea in a few words. An attempt has been made to analyze and magnify the quintessence of the comparison in the process between modernism as well as modernization. Comparison between modernism and modernization of Josean Korea The present day Korea is...
2 Pages(500 words)Essay

Revenue Budget(s)s

...Part 2 The changes in the surplus and deficit are attributed to the change in license system from an old style to a newer system. Part 3 If the number of vehicles failing inspection would increase then this would increase the revenue obtained from the vehicle inspection fees by an additional 15%. Therefore making standards tougher would result in more vehicles failing the inspection and subsequently lead to an increase in revenue. This would be beneficial to the organization. Part 4 a) If the new system is implemented at the beginning of the year, there would be higher deficits in general for that financial year. This is because the cost incurred by the organization in contracting outsiders for the licenses is much higher... 2 The changes in...
1 Pages(250 words)Case Study

The similarities and differences about buddhism between China and Japan

...for many centuries to come. It was only after the Second World War that the religious teachings of Buddha came alive in the region again and newer schools of thoughts emerged to not only adapt the basic teachings but also incorporate them in the traditional art and culture of the country. Similarities and Differences between Buddhist teachings in China and Japan Buddhism does not involve concrete customs and rituals that are to be followed by the people. Rather, it offers a way of life and promotes a universal message of morality and spirituality. Even though the teachings remain the same throughout, the means to attain Buddhist aims can differ from...
7 Pages(1750 words)Research Paper

Outline the similarities and differences between Milgram's (1963) obedience study and Bulger's (2009) replicationo

...Similarities and differences between Milgram (1963) obedience study and Bulger (2009) replication Introduction Milgram conducted an obedience study to determine when people in inferior positions will implement the instructions of those in power without question and when such instructions will be questioned. However, Bulger (2009) replicated the study conducted by Milgram and made a number of conclusions. Both studies have a couple of similarities and differences based on their study setups and conclusions. Similarities In the two experiments, the investigators subjected the study participants to varying levels of electric shock. The...
3 Pages(750 words)Essay

China and Japan's environment

...was also appealing to the general moral obligation regarding the emission of the greenhouse gas. Considering the potential differences between Japan and China in terms of their norms, there was need to join necessarily to ensure that the universe is safe from harmful gas (Wiener, 2004). Forces that limit their ability to address the problem effectively One of the main challenges in addressing the problem of greenhouse gas emission is policy implementation follow up. Follow up is very critical especially when it comes to environmental issues. In ensuring that real achievement regarding environmental issues, it is important for both governments to establish market mechanisms such as caps...
2 Pages(500 words)Essay

S&S Air Company

...S&S AIR COMPANY Internal growth rate= (Return on Asset x Retention ratio Return on Asset x Retention ratio) Return on Asset= 2,029,766/19,986,170=0.10 Retention ratio= 1-dividend pay-out; Dividend pay-out= 610,000/2,029,766=0.3 1-0.3=0.7 IGR= (0.1 X 0.3)/1-(0.1 X 0.3) 0.03/0.97=0.031 3.1% Sustainable Growth Rate= (Net income/ Shareholder’s equity) x (1-retention ratio) (2,029,766/11,435,815) x (1-0.7) 0.18 x 0.3=0.053 5.3% Internal growth rate: This percentage of (5.3%) is the maximum growth S&S Company can grow with external financial aid. Sustainable Growth rate: Refers to the growth rate a S&S Air company can grow...
1 Pages(250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Similarities and differences between japan's keiretsu and south korea's chaebol for FREE!

Contact Us