Governmental Issues and the Exit Trend in Japan due to the Globalization

Seminar paper from the year 2017 in the subject Business economics - Economic Policy, grade: A-, University of Michigan, language: English, abstract: While it is true that there is no perfect government, it is also true that the government is not the root of every evil. Consequently, this paper aims to examine if it is solely the government which made an exodus in the society or other factors such as active ongoing globalization was also the one influence to the exit trend. From this perspective, this paper will see how globalization affected to the exit of firms in-depth level, using the company Toyota as an example, which also mentioned in Professor Schoppa’s Race and Exit paper, and then, some Japanese citizens’ perspective will be brought so as to see their perspectives towards the government’s management. The current market trends suggest that today, almost every product has either been shipped from a foreign country or has been manufactured in another country, or the brand is not local but a foreign brand. Origin of globalization is a long debated topic. However, the most interesting fact remains that, seeds of globalization were sown during WWII. During the Cold War, the world has roughly fallen into two categories: ones that followed democracy lined up behind the U.S. and ones that followed communism lined up behind the Soviet Union. However, as it is well known, there were many more countries that lined up behind the U.S. Despite the outnumbered countries, the U.S. did not give up strategic positions around the globe for their economic situation.