Japan in the Free World Economy: A Statement on National Policy by the Research and Policy Committee of the Committee for Economic Development

By Keizai Doyukai; United Nations Environment Programme | Go to book overview

import control over machinery may exert serious influences on the future development of now developing industries such as automobile, electronic computer and large-sized electric generator manufacturing. At present, many Japanese corporations are known to be investing sizable amounts in productive facilities in spite of a current tight money situation and some of them are either acquiring smaller but technically competent companies or merging with comparable, large companies. This is strong evidence of the determined efforts on the part of Japanese corporations to raise as fast as possible their productivity and their competitive strength on the international market.

Japan is fully aware that an increased volume of imports into Japan as a result of import liberalization will affect both Japan's foreign exchange reserves and her domestic industries in a varying degree. Japan is equally aware that import liberalization will diversify consumer products available to the Japanese people and perhaps bring consumer prices down in some cases. Increased imports thus raise no serious problem in the Japanese economy as long as they are paid for by increased exports, and as the government takes appropriate measures to alleviate any hardship on particular industries affected. Chances of increasing Japan's exports, therefore, hinge upon the possibility of import liberalization in those countries, including the United States and Western European nations, with which Japan trades.


3. INTERNAL PROBLEMS
CONNECTED WITH
JAPAN'S HIGH RATE
of ECONOMIC GROWTH

1. Acute Fluctuations in the Economy

Japan's remarkable economic growth in the postwar years has not always been a smooth, continued upsurge but rather has been marked by several acute business fluctuations. Industrial production has increased by more than 20 per cent a year during an upswing, and then

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