Download Japan and the Third World: Patterns, Power, Prospects by William R. Nester PDF

By William R. Nester

An research of ways Tokyo entangles strategic international locations and areas in an built-in in another country political monetary net, producing huge, immense wealth and gear for Japan.

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Additional resources for Japan and the Third World: Patterns, Power, Prospects

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CONCLUSION Will Japan's economic policies shift from neomercantilism to liberalism as Japan's global power and demands to liberalise correspondingly grow? Genuine internationalisation is extremely 46 Japan and the Third World unlikely. According to Calder, although Tokyo's foreign policy follows a clear cut strategy geared toward securing Japan's national interests, those policy changes that do occur, however superficial, are typically a result of 'outside pressure, and that reaction prevails over strategy in the relatively narrow range of cases where the two come into conflict'.

In April 1949 the exchange rate was set at 360 yen to a dollar, which was about 10 per cent lower than the 330 yen to a dollar rate that was widely held to be appropriate. 17 This rate remained the same for the next 22 years despite the fact that Japan's economy grew at an annual rate of 10 per cent and in 1971 Japan's trade surplus was over $10 billion. Although during the 1960s the other major industrial powers revalued their currencies, Tokyo continued to maintain its severely undervalued yen.

Foreign investments were allowed only in the form of minority owned joint ventures with Japanese firms, and only then if they were considered essential for 'the self-support and sound development of the Japanese economy'. Even then MIT! strictfy regulated the firms' operations and repatriation of profits. 7 million during the 1950s. 29 By strictly limiting foreign investment for most of the post-war era, Tokyo forced foreign firms to untie technology from their control; since foreign firms could neither sell not invest freely in Japan, their only opportunity to make money was to sell their technology to their rivals.

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