Comparison of business system of China and Japan Essay

1. IntroductionThis enquiry paper will concludes the simile of similarities and differences of business trunk in chinaware and japan. It refers nearly institutional parity and clusters and implications for varieties of ceilingism and business remainss theory by Michael A Witt and Gordon Redding and more or less other wholeness s author is Zhang X & R Whitley Changing Macro-structural Varieties of East Asian Capitalism. In general, because China and lacquer both Asian country so that this 2 countries has many similar aspects such as culture, food, historyin the other hand there are exists differences between them. 2.Comparison of similaritiesThe countries of China and Japan pct numerous similarities other than their geographical proximity. They both have establish extremely bass cultures and great sense impressions of national identity.Their histories have crossed paths during several(prenominal) periods since both civilizations have existed for such a long times. Th e countries also portion out similar religions and value brasss, which have influenced distributively other. In terms of Japans frugal culture is theidea that the firm exists to keep masses employed, and that return on capital for advantage of shareholders is not a chief(a) rationale for scotch action. A casual review of publications suggests that most of the research in the field has focused on advanced industrialized nations in the West and, to a lesser extent(e.g.Berger &Dore,1996Orr et al,1997Redding 1990Whitley,1992).At the akin time,it implies that many questions catch ones breath fully or situationially unanswered, and the field, wild open for further exploration.Whitleys(1999) tale of the progeny of six major business-system types likewise incorpo sites the role of culture, in the figure of speech of shared beliefs about authority, trustfulness, and communitarian ideals. While he at a move placelines that institutions mediate both trust and authority, the na rratives included in his illust consec enjoin how cultural and historical forces lead to the emergence of some institutions. The similarities between Japan and China didnt just devolve on their own. When ambassadors from Japan visited Tang dynasty China in the 7th century, they free-base an empire that was much larger, wealthier and more unified politically than their own nation. When they returned denture and reported what theyd seen, the Japanese imperial court became so glowing about Chinese culture that they built a sunrise(prenominal) capital city at Nara in imitation of the Tang capital at Changan.Between the years 710 and 794, the Japanese emperors reorganized the country and its legal system found on Chinese models. They also encouraged the adoption of Chinese philosophical and religious ideas. The connections between Japanese and Chinese culture began in this time period. China and Japan have both been strongly influenced by the philosophy of Confucius, who taught a s ystem of thought based on the magnificence of relationships and educational proceeding. In both China and Japan, parents tend to push their children to tuition hard because academic achievement is so closely tied to emerging frugal success. The Confucian emphasis on relationships has also influenced both countries, entirely in slightly different ways. In China, people tend to be loyal to their family relationships more than to any other personal connection.In Japan, on the other hand, people are encouraged to be loyal to any(prenominal) group they belong to, such as the company they employment for. about people probably think of Zen Buddhism as being characteristically Japanese, but Zen was actually borrowed from the Chan sect of Chinese Buddhism. Several of the major Buddhist sects in Japan have Chinese origins.For instance, Japanese Tendai Buddhism was based on Chinese Tien Tai Buddhism, and the Kegon sect was founded by a Chinese immigrant during the Nara period. Defining features of traditional Japanese culture such as the tea ceremony developed through the influence of Chinese Chan on Japanese Zen. Japanese artists borrowed themes and techniques from the Chinese for centuries.For example, the Japanese painter Ike Taiga based his 18th-century ink paintings on Chinese instructional manuals. Japan also borrowed the use of Chinese characters, but had to modify them due to the great differences between the two languages. Shodo, or traditional Japanese calligraphy, uses Chinese characters to express the artists randy and spiritual state. Although traditional Japanese artistic styles show clear Chinese influences, they are also distinct from Chinese styles. For instance, though the Japanese look up to classical Chinese poetry, they also invented their own poetic forms such as the waka and haiku. 3.Comparison of differencesDespite all of similarities the recent history of these two countries has caused them to diverge into two very distinct modern civil izations. A great factor in this divergence is the extreme differences in the evolution of each countrys economic policy. For China, philosopher Confucious developed a pattern of thought which was key informing a sense of national identity. His ideas have had a profound refer on the evolution of Chinese culture, organization, and economics. He believed in and practiced the highest meters of morality, notwithstanding did it all in the spirit of moderation and harmony so admire by the Chinese. (Morton, 33). Although his ancestors whitethorn have been aristocracy, Confucious was born into a rather uncouth family in 551 B.C.He wanted to eliminate the moral relativism of his time. In personal line of credit to the spirit of Confuciouss age and to the behavior of those addicted to the pursuit of inconsiderate whims, the gentleman must banish from his conduct and even from his manner or expression anything savoring of violence, arrogance, or impropriety.(Morton, 37). Confucious st ressed five virtues humanity, courtesy, honesty, knowledge, and integrity. This laid the keister for a restructuring of the Chinese moral value system. This foundation still lies on a lower floor present day Chinas heightened sense of morality. While Confucious teachings may have helped structure a strongermoral code in China, it may have actually hindered the evolution of Chinese economics.First Confucianism stressed agriculture period giving commerce an inconsequential role.Also, Confucianism saw profit-making as a stingy endeavor making competition in markets almost sinful.The way of purport prescribed by Confucious included renouncing assets and pursuing the Way.All of these aspects of Confucious thought contributed to the inept preservation preceding the diversity in China. On the other hand, Japans value system was formed with an inherent emphasis on cracking work ethic. This value worked to help rather than hinder Japans evolution into an frugal Power in the modern w orld. The aforementioned sense of loyalty to work stems from an internalized sense of responsibility in Japanese citizens to work for one anothers well-being. Here, more than in the family, work is self-importance validating in the sense of affirming ones personal achievement and maturity, and in validating ones belonging and participation in a mixer group.(Eisenstadt, 538). When they are away from their work, they identify themselves as part of their company different to others who work elsewhere. In this way work is another family-type unit to which the citizen belongs and gains a sense of identity from.Since family and work are so similarly structured in life, individuals cannot help but equate to some degree their sense of membership to each and relish their ties to each in a similar manner. The organization and unity of Japanese companies can be seen in rituals performed at work in the morning. The rituals reinforce the collectivity between co-workers and dedicate the group a sense of belonging. Differences between Japanese and Chinese economic statistics can be traced to the different economic systems employed by each country. For example, the gross domestic product certain addition rate in China was about 8%, while in Japan it was 1.3% both for year 2000. (1) deliver is mostly an individual decision under a market capitalism system similar to Japans.When this decision is left up to the individuals in the economy it usually results in a lower savings rate and, in turn, investment than under a mixed collectivised system like Chinas.Chinese government has the capacity to control investment rate unlike the capitalist system which deflates the role of government in economic activity. The discrepancy between these two countries in terms of GDP real growth can also be the result of Japans extreme growth in past decades and its leveling off. China on the other hand still has much room for economicgrowth even though they too have experienced impressive growth. Economic systems impact on hard data can also be seen within Chinas history.Japan has shown the advantages of the capitalist system in hard to recover from its late 90s recession.According to the mofa internet source, Japan has helped create new businesses and industries through deregulation. (2) This shows how the economic systems flexibility allows for further sluggish decentralization. Chinas reforms have come through major revolution such as the 1978 revolution which was introduced by government. This is characteristic of socialist economies in which changes begin through government introduced package reform. Japans GDP per capita in 2000 was around $24,500 while Chinas was around $3600 for the same year. (1) This can be linked to differences in unemployment rates (Chinas was more than double that of Japan) especially in Chinas expansive farming(prenominal) areas.In 2000, Japans inflation rate was negative while China experienced a .4% rate. This shows the socialist e conomy governments ability to control rates more effectively.Health is the essential aspect of standard of living. Life expectancy in China is relatively high at 62.3 years (61.2 for males and 63.3 for females). (3) The population control mechanism implemented by government in 1979 which limited each family to one child . This is an example of the socialist economy working positively. The program has dropped Chinas population growth to under 1%. Japan maintains the highest life expectancy of 74.5 years (71.9 for males and 77.2 for females). another(prenominal) new indicator of relative standard of living, the Human Development big businessman includes several factors such as longevity, education, and economic standard of living in it calculation. Japan ranks 9th,which places it in the high human development category.China ranks 87th placing it in the medium human development category. China scores significantly lower than Japan in the education value of the HDI . Free public teach ing through junior high is provided for all children in Japan which could be the reason behind the education discrepancy. Japans 99% literacy rate is one of the highest in the world.The Chinese government implemented a stripped-down standard of living program in the 1990s. This is similar to a social security program and helps poverty stricken citizens in urban areas. This system exemplifies the socialism within the economy. In 2000 an extension of the program offered unemployment insurance and reward for retired workers. China also increasedinvestment education, libraries, museums and broadcasting stations. In summarize,although these countries share many things such as geographical location, major religions, philosophies,etc.they have diverged part due to the different economic systems they have employed throughout their histories. twain countries have enjoyed tremendous growth in the second half of the ordinal century but their modes have been very different. Japan utilized a market capitalism which was introduced by America after World fight II. This has led to a present day Japanese culture which in many ways is very similar to American culture. They have a desire for material wealth, value-added goods and leisure. Hopefully they will not lose their rich culture and tradition in the midst of economic growth.China has taken a more conservative approach and has moved from planned socialism under Mao Zedong towards a functional market socialism.These countries exhibit the impact of an economic system on the people within a country as well as its impact on economic growth.ReferencesWitt, M & G Redding (2013). Asian Business brasss Institutional Comparison, Clusters and Implications for Varieties of Capitalism and Business Systems Theory Zhang, X & R Whitley (2013). Changing Macro-structural Varieties of East Asian Capitalism Eisenstadt, S. N. Japanese Civilization. capital of the United Kingdom The University of Chicago Press, 1996. Morton, Scott W. Chi na Its History and Culture. New York McGraw-Hill, Gordon Redding , Michael Witt (2008).Chinas Business System and its Future Trajectory