ive marketplace. To serve their stockholders, they must serve the public by innovating and holding down costs." In Japan, however, priority derives to the producer, not to the consumer. Further, profits are not sought primarily for stockholders, but rather to serve "as the wellspring of growth which they see as an integral part of nation-building."
Japanese companies typically pursue strategies designed to create long-term profitability, as opposed to short-term profitabilityùthe typical perspective of most American firms. According to western economic theory, long-term profits should be reflected in equity stock prices. In Japan, however, "managerial decisions are rarely driven by stock prices."
Significant levels of some resources required by Japan must be acquired through importation. Japan's principal imports (in the order of trading value magnitude) are (1) mineral fuels, (2) foodstuffs, (3) metal ores and scrap metals, (4) machinery and transportation equipment, and (5) textile fibers. Japan's natural resource base is limited. Its domestic crude oil reserves are minimal. All most all of its crude oil requirements must be imported. Its domesti
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