By Paul Norbury
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Ideas for constructing expertise with disciplined, planned, clever practice
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Additional info for Business in Japan: A guide to Japanese business practice and procedure
Also, sinceJapanese department stores do not maintain inventories, suppliers must have facilities near-by to ensure ready and steady supply, often making deliveries on a daily basis. Similarly, component and materials suppliers must maintain an inventory to assure the original equipment manufacturers or processors of regular deliveries to relieve the customer from the necessity of carrying the inventory hirnself. Furthermore, if components and materials do not meet the users' tight specifications, they are returned, at the suppliers' expense and often with penalties imposed.
To cope with challenges such as these, the advanced western economies may need to adopt considerably more aggressive development policies for their advanced industries than they seem to be contemplating at present - or choose the alternative strategy ofinsulating themselves within a regional trading block (which in the long run might cost them dearly in terms of ability to compete in third markets). The negative aspect of the challenge posed to the West by Japan' s interaction with the NICs should not be underestimated, but there are positive aspects as weIl mostly related to the fact that the NICs themselves are unlikely to wish to become over-dependent onJapan.
What this chapter aims to do is not to discuss the phenomenon as a whole but to look at its significance for Japan and for the future pattern of economic relations betweenJapan and the West. The first NEW INDUSTRIAL COUNTRIES OF EAST ASIA 23 aspect of the subject which deserves attention concerns the trade imbalance betweenJapan, the Asian NICs and the industrial West. Japan is in substantial surplus with all four NICs mentioned above and was still increasing its surplus rapidly with each of them up to the beginning of 1979.
Business in Japan: A guide to Japanese business practice and procedure by Paul Norbury