Analyze The Impact Of Globalization Since 1970 On Japan Harvard Case Solution & Analysis

Introduction

            Globalization is a term that is used to actually refer to a phenomenon that basically involves sweeping and the radical changes across the world; globalization has never been a new concept. The people around theworld have been experiencing globalization and changes around them for ages now[1].

            The history of human can be called as the process of becoming globalization for its inception. Globalization has been a concept that has been used since the start of Roman Empire. Along with this, industrialization and modernization has been basic terminologies which can be clearly termed as globalization process. Moreover, globalization has been a process of international integration which has risen from the interchange of the world, ideas, product and all the other aspects of the culture.

            Globalization in telecommunication and transportation infrastructure also includes the rise of the telegraph and the development of the internet which has been a major factor of globalization that has been generating different aspects of business.

            Similarly, the concept of globalization has also been a concept that has increased in the past two decades. It is a concept that has emerged from the transaction of four interrelated sets of communities of practice. These four concepts or components of globalization are based on the trade and transactions, investment and capital.

 Evolution of Globalization in Japan

            Japanese history has marked quite a long period of isolation which lasted for almost 250 years. The country in the era was basically cut off from the outside world completely. However, in the past 100 years or so, things have changed for the country Japan. It has new evolved as one of the largest economies and the most successful ones also.

            The company has quite significantly played the role of expanding its reach in the export, import, trade, etc. through its effective and efficient methods of globalization. Despite the fact that Japan has evolved in the terms of global expansion, however still the country has not adopted the business methods.

            Along with this, the global marketplace is basically revolving with different market rules and regulations. It is a fact, that organizations are becoming more aligned and accustomed to using globalization factors to encourage and engage more business opportunities.

Globalization in Japan during 1945-1970

Japan has faced quite indifferent growth after the World War. The country actually build quite rapidly under the direction of the government which has been aided a growing domestic market. During the era of post-World War II, the country experienced rapid growth in almost all the sectors of business[2].

The companies during this era transformed themselves into centralized organizational structure and promoted business which had potential to come up with new and innovative ideas.

During the period of 1950s’s the Japanese economy was one of the most significantly growing economies. More companies during this era entered Japan because of the technological revolution.

Social class and income class have also build quite significantly during this era and more people in the country have actually become financial strong. Companies such as Toyota entered Japan during this era because of the increase in GDP. The purchasing power of people in the country increased during this era, and the Foreign Direct Investment (FDI) also increased.

The role of globalization was immense; the government of Japan took initiates to encourage globalization. In terms of balance of payments, Japan has run in deficit services during the period of 1945-1970. The trade in services generally includes the insurance, transportation, travel expenditure, income from investment.

The balance of payment of Japan during the era of 1945 to 1970 faced deficit of surplus. The country was importer more good and exporting lesser goods. The deficit in Japan increased quite rapidly, $99 million in the year 1960 which reached to $1.8 million in the next ten years.

Analyze The Impact Of Globalization Since 1970 On Japan Case Solution

The transportation deficithas also increased during this era to make it difficult to attract foreign investments. It can be assumed that during the era of late 1960s the globalization was at growth and was still under the phase of development therefore, the country was unable to actually take advantage of its advantages.

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