Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

<!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin-top:0in; margin-right:0in; margin-bottom:10.0pt; margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} a:link, span.MsoHyperlink {mso-style-priority:99; color:blue; mso-themecolor:hyperlink; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {mso-style-noshow:yes; mso-style-priority:99; color:purple; mso-themecolor:followedhyperlink; text-decoration:underline; text-underline:single;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} -->

/* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;}

A Japanese Keiretsu is a network of different businesses that hold interest in each other to form a type of security blanket. These are common in Japan because of Japanese traditions in having a family control a business. The business is considered almost like an extended family. Just like in a family you may give favors to a family member, a Japanese Keiretsu will give favor to members of their Keiretsu. The central figure in a horizontal Keiretsu is a central bank, while in a vertical Keiretsu it would be a big manufacturing company such as Toyota. The Keiretsu system is more than just an economic system. It is more of a system of obligation or duty. Japan is a country rich in nationalism and very proud, and that is reflected in how they conduct business. Not all of the companies in Japan are a Keiretsu but many of the bigger Japanese companies that we see today started out as a Keiretsu. However, the keiretsu system of business is not just confined to the Japanese. Other developing countries have adopted this form of business system in order to help them stay secure. For example, South Korea has their own types of Keiretsu they call Chaebol. These are the same basic principle of a Keiretsu where there is a system of interweaving of management within different companies or subsidiaries. Many of these Keiretsu style businesses do much of their business globally and when business is good the whole Keiretsu will benefit. However, if the Keiretsu or Chaebol is not doing so well it could potentially have devastating effects to the entire country let alone the business. Due to the fact that all the businesses or subsidiaries are intertwined, if there is any type of collapse or market downturn the whole country’s economy could suffer. Just as South Korea’s economy took a dive when the Daewoo Chaebol collapsed in 1999. The Chaebol did not properly hedge against the impending economic downturn, instead their strategy was to take on more debt and it turned into a disaster for the entire country. Sources Miwa, Yoshiro and Ramseyer, J. , “The Fable of the Keiretsu” retrieved on May 11, 2009 from http://www.law.harvard.edu/faculty/ramseyer/jemskeiretsu.pdf. Chaebol. (2009, May 11). In Wikipedia, The Free Encyclopedia. Retreived on May 11, 2009, from http://en.wikipedia.org/wiki/Chaebol   Trevor Britton Tues 7-9:45 pm