Japan In The 1980's

In the 1980s, Japan was largely viewed as the world’s most powerful economies. Their economy exploded after three decades of growth, and they had risen to become the world’s second largest economy. Japanese companies were eliminating American industries, from automobiles to consumer electronics. Also, Japanese companies were purchasing assets in the United States, like movie studios, golf courses, and real estate. Their stock market, Nikkei, was booming during that year. Property prices had increased so much that one square mile of Tokyo was worth more than America. However, due to its rapid growth, their economy went into a recession. The stock market collapsed and prices rapidly increased. Consumers were reducing their spending as demand …show more content…
Other countries should not expand too quickly because it could result in recession in the future. They should avoid risky lending policies that could lead to bad debt. Also, don’t delay on responding to falling asset prices. Other countries should keep that in check, and tried to stimulate the economy and consumer spending. If other countries don’t ignite consumer spending then demand and prices will fall. Businesses will cut wages and employment which leave people jobless. In the worst case, the economy will turn into a depression that will cause the market to decline. Another factor is the demographic in the countries. Japan birthrates fell in 1970s and 1980s. Fewer people were working, but there are more elder people that need support. The retired Japanese are notorious for not spending. Other countries can try and boost the birthrates or accept immigrants to reverse this trend. They should create a positive outlook for the future generations to change their viewpoint of the economy. Young people have pessimistic view on the future, and the expectation of their life. The government should step in and reassure the young generations that there are opportunities for them to …show more content…
Right now, Indians are experts in technology as in software, hardware, and engineering. They produce people with high skills to work with foreign companies. Hence, the United States outsource customer service to India so that customers in America can get help 24/7. Also, the different in time zone can help products or service to move faster when it is night time here and morning over there. The biggest obstacles in India are labor laws and tariffs. Since Indian companies can only hire 100 people, it does not help the companies to expand or make new products or services. If the Indian government changes the laws then Indian companies can expand their field, and compete with foreign companies. On the other hand, high tariffs will not bring in foreign companies, but resisting them from investing in India. If the tariffs are lower, then low cost products will be made in India. This will give Indians jobs, to help them have a stable life, and it will boost the economy. India can compete with China for cheap labor cost, and it will give foreign companies more options to choose the