Economics Assignment

1) The bursting of the Japanese Economic Bubble in the early 1990s was followed by an extended period of economic decline and stagnant growth. In order to revive the Japanese economy a new development model was implemented. Compare and contrast the Japanese Institutional model of post-WWII to the 1990s period with the current "new" Japanese model according to the following criteria: (a) development strategy, (b) government participation and control, (c) the government-business relationship, (d) the role of banks, and (e) business organization and strategy.

2) The Asian Currency Crisis was a financial contagion that devastated Asian economies in the late 1990s. Discuss the meaning of the following statement in the light of the Asian Currency Crisis: "East Asian industrial policies promoted excesses and recklessness in a world that punishes both." Support your answer with specific facts, examples, and logical and economic reasoning. Make sure to discuss specific industrial policies.

3) Japan's Ministry of International Trade and Industry (MITI) and Ministry of Finance (MF) were entrusted with the implementation of the Japanese Institutional Model. How did the Japanese government maintain control over industrial finance and direct foreign investment? Explain and support your answer with relevant details. What role did public enterprises play in the Japanese plan?

4) A frequently cited explanation for Japanese economic success is comparative advantage. How is culture a source of comparative advantage in the Japanese model? How did Japanese firms achieve the transfer of desired cultural characteristics and personality traits to the functional setting of the firm? What are three specific examples of practices that define Japanese corporate culture in the Post-WWII period?