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The recent changes in Japan's heavy industry are:

1.Globalization

-What is globalization?

When manufacturing factories establish plants aboard,they become the multinational corporation.The headquarter's still in Japan,but productiob bases and sales outlets would be in other countries likes Europe,South-East Asia,etc. This trend is known as globalization.The improvenment of telecommunication favours globalization.Firms can manage branchus easily through telecommunication.

-Why globalization?

It's because Japan exports a lot of manufactured goods aboard.But to protect its local goods, the governemnt restrict export goods.As Japanese goods are cheaper than those made in other countries likes Europe, North America, many people choose Japanese products and factories in these places close.This leads to unemployment.The trading relationship between Japan and its trading partner then becomes tense.In order to solve the problem, some company firms establish their plants in places where they export goods to,and employ the local people, then directly sell the finished products in the local market.

On the other hand,the production cost of producing goods in Japanese factories have been incresing. Factories in places like China,South Korea can produce with a cheaper rate.This also attracts companies to set up branches in other areas.

The advantages of globalization are:

1.Provide cheaper land prices and labour cost

2.Larger land area

3.Firms can directly contact consumber and better serve their needs

4.More business opportunities

5.Lower tax rate as goods are sold directly in local markets

2.Focus on technology-intensive industries

Heavy industry needs large resources and energy which Japan lacks.In order to save energy and resources,Japan then started to develop industry using less energy and resources likes electronic industry.The integreted circuit industry is one of the example. It is small, high value- added, and is used in electronic goods, for instance radios, calculators,etc.

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Henriette Pagac

Lvl 13
2y ago

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