Part One: Required Reading
The Japanese state is working hand in hand with the markets through employing the version of developmental capitalism which aims at promoting the country”s international competitiveness in the international market (Ito, p 170). In addition, there are several reforms that the state has brought forward to the Japanese markets that look forward at streamlining the business in them market. Furthermore, according to the article “Japan at the Crossroads”, the author states that “Japan rose from ashes to become a world-class producer, exporter, and financer.” This means that the state contributed towards the success of this economic progress of Japan. (Dawson, p 469) This has been achieved through good state-market relationship within Japan.
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Part two
In the Journal of Agricultural Economics, there is an illustration about market failure in Japan due to poor association between the market and the state. Due to this, there has been a problem in asymmetric price adjustment in the markets (Numata, p 184). In addition, there has been an increase in land prices and farm lands. The government has been unable to come up with mechanism to check on this problems thus resulting in market failure. I addition, the author states that the government had failed to regulate some underhand businesses in the market (Teranishi, p 319).
Part three
In my opinions, Japanese state is doing more efforts to coordinate with the markets so as to come up with strategies in ensuring good flow of business in the market. In addition, the state has also done more efforts in controlling market prices by coming up with necessary policy that looks forward at coming up with fair prices in the market. Furthermore, Japan has expanded its markets through the state contribution with good relationship with other neighboring countries that do most of their businesses with Japan.
- Dawson, P. J. ‘Market Failure And Japanese Farmland Rents’.”J Agric Econ”65.2 (2013): 406-419. Web. 30 Mar. 2015.
- Ito, Takatoshi et al. ‘Japan At The Crossroads: Editors’ Overview’.”Asian Economic Policy Review”8.2 (2013): 169-192. Web.
- Numata, Shingo, and Fumiko Takeda. ‘Stock Market Reactions To Audit Failure In Japan: The Case Of Kanebo And Chuoaoyama’.”The International Journal of Accounting”45.2 (2010): 175-199. Web.
- Teranishi, Juro. ‘Modernization Of Financial Markets: An Analysis Of Informal Credit Markets In Prewar Japan’.”World Development”22.3 (1994): 315-322. Web.
- Vogli, Roberto De. ‘Obesity As A Market Failure ” Japan Today: Japan News And Discussion’.Japantoday.com. N.p., 2014. Web. 30 Mar. 2015.
