Different environment in the regions
ASEAN: Association of South EastAsian nations
1. rapid growth
Why rapid growth? (p11)
High saving rates: China- 25% of GDP, US- 0.5% of GDP
Demographic situation: high population in this region.
Investment in education
Different economic model: focus on Japan; later other Asian countries just follow the Japanese
Role of state: good links with government.
Corporate finance: different bank rules
Environment of resource activity
Led to a homogenous group with strong attitudes towards themselves and others
To secure resources and the desire to be accepted as equal by the world powers
Japan began territorial expansion to otherAsian countries
After WW2, it was shrunk back to its main landmass
US had taken control of Japan
Something happened that promoted US to grant Japan independence in 1952
Communist victory in China
Communist spreading across Europe
Japan re- industrialized and by 1980s had the highest per-capita income in the world.
An important element in Asian business is business groups
3. Business groups: A collection of diversified firms that are formally and informally linked to
each other, and under a central control.
- Business houses in Indian
- Chaebol in South Korea: sumsung, Hyundai, LG
- Keiretsu in Japan: Mats