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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (131410)	3/5/2017 3:40:50 AM
From: elmatador	Read Replies (1) \| Respond to of 218430

Understanding Rollover strategy is paramount to understand Asia. Japan invented and perfected the roll over strategy. This was the hey day of Japan lat 80s: Asian countries are becoming too expensive for Japanese firms’ overseas production. “Yamaha, for example, which went to Singapore in 1979 to make tennis rackets and to Taiwan in 1982 to make golf clubs, went to Thailand a year ago to make skis and to Indonesia to make electronic organs.’ The Economist, Nov. 16, 1988. ... This is already happening, as Taiwan started facing labor shortages Taiwan Pineapple went abroad, because Taiwanese were not willing to work in pineapple plantations. “By 1979, Korean plywood manufacturers were moving abroad for cheaper labor as well as to save on transportation costs for materials.” Richardson, Ron, “Opening the Offshore Drive,” Far Eastern Economic Review, Dec. 7, 1979. Cited from Wells, Louis T. Jr., THIRD WORLD MULTINATIONALS, The Rise of Foreign Investment from Developing Countries, Mass., MIT Press, 1983. Here is the inventor of the roll over strategy: Japan tries to convey the impression that what they really aim for is to automatize their plants and continue operating their export machine. In reality Japanese companies shift capital in the form of direct investment to other countries and regions of the world economy , they substitute production and in such countries or regions for exports to them. “New technologies are initially exploited in the Japanese domestic market, then by export. As competition and trade friction intensify, production is moved to major customer markets. Finally, as newer equivalent products and technologies appear, companies ‘roll over’ into new areas, leaving the older ones to foreigners, both in the NIC and the economies of Europe and North America. Conversations with MITI officials in 1985 confirm the impression that government operates with a model of Japanese economic development in mind that entrails continual ‘roll over’ into new technologies. Japan is seen as thereby blazing a trail in economic development which others can follow. One implication of this thinking is that less developed economies will permanently trail Japan, receiving the leavings from the Japanese table in the form of a steady supply of transfers involving outdated products and technology. Japanese foreign aid policy is important in developing markets and following the ‘roll over strategy’ in industrial development. In 1984, Japan overtook France to become the second-largest aid donor (in absolute terms) after the U.S. JAPAN ECONOMIC JOURNAL, JUL. 2, 1985. “The evidence for this is considerable. For instance, in a survey of 3.200 subsidiaries of 1.250 parent companies in manufacturing, the Japanese MITI found that 78% of such subsidiaries abroad manufacture goods to replace exports. Kono,T., (1984) Strategy and Structure of Japanese Enterprises, Macmillan, London. Cited in Holland Stuart, (1987) Global Economy, George Weidenfeld and Nicholson Ltd., London. The way Japan started using its cash surplus to help LDC’s has already gotten attention. South, Oct. 1988, Der Spiegel, Dec. 18, 1989, The Economist, Jun. 17, 1989. The Japanese aren’t ‘helping’ (Low Developed Countries) LDCs because they think it is right or any other demagoguery Europeans love to use. The Europeans love to give a coat of paint of respectability in their actions taken on pure economic grounds. Japan goes global for lack of any other alternative.There are no secondary considerations. They push forward in their global way without the fallacious argumentation of helping the poor countries. The Japanese are not putting money in LDCs blindly. They bluntly express their opinion about the countries they hold negotiations. Japanese businessmen in Brazil for instance, explicitly told businessmen and government officials that nobody would be willing to invest in an economy which is a chaos. Which indeed was —and still is— the real situation of Brazil’s economy. They — speaking through one government official in Nigeria— suggested that what hampered the possibilities of Japan’s investment in Nigeria was the fact that businessmen in Nigeria are crooks. Which in fact is not far from reality.