Compare and contrast business systems in Japan and China Essay

Compare and contrast business systems in Japan and China - Essay Example al nations reformed Chinese agriculture, science, technological innovativeness, and industry transforming china into a contemporary industrial state (Broderick, 2003, p.85). The population control and the one child policy that aided to enhance the strategy towards the Chinese population feeding was also an added advantage. The rapid Japanese economic growth dates back to the WW11 and its effects in putting Japan among the few most economically advanced nations of the world. Currently, Japan is among the topmost economic powers after United States of America, China, and EU (McLeod, Ross and Garnaut, 1998). Although Japan is a increasingly small nation, it has a solid population density and most of its land does not favor agricultural production because of mountainous topography and inadequate minerals required for development of agriculture. Therefore, Japan must rely of innovation and creativity for goods production and export such goods for its economic development. Differences and similarities in the systems of business Undoubtedly, the East Asian economic development over the past over three decades can be considered as the key world surprises. As earlier mentioned the easy will concentrate on Japan and China as the main representatives in the business systems analysis, since the 1950 and 80s the economy of Japan has been a miracle due to its faster development. In the 1960s, 70s and 80s the economy increased to about 10% and 5% in average respectively, (World Bank, 1993, p. 5). Considerably later, starting late 70s the Chinese economy similarly started to show hyper-growth signs and it is currently the rapidly growing economy with about 10% growth rate in GDP average (Kim, 1998, p56). World Bank report 200, suggests that the Chinese and Japanese economic... Although distinct in various ways, Japan and China have various economic similarities and differences that set them as the top growing economies of the world. The paper seeks to compare and contrast business systems in these two nations. Therefore, to explain the diversities between the business systems of Japan and China, I will first explain what business system implies. As defined by economists, business systems implies methodological processes that are employed as a delivery means for providing certain products and services to the final users or consumer in a clearly defined market environment. The two nations share similar aspects like strong government influence in economic development and maintain focus in technology and education. Nevertheless, their disparities occupy various aspects of their systems of business. The two share similar historical cultures like the Confucius Philosophy belief, however, they form different contemporary cultures that manifest in different business cultures. Concerning the business culture, the Japanese firm business relations and cross-shareholding among groups of businesses formed a critical networks in business, although, such business connections tends to weaken the small business enterprises competitive advantage because of capital mobility. In the business systems of China, the SOE mainly play a crucial function in local industries like materials production supply of power and energy and transport. After State Owned Enterprise reformation, the market share is lower than the private sectors. Therefore, the business systems in both nati ons have some similarities and disparities and play a crucial part in global economy.