Cooperation Between the Automobile Company Honda and the Government of Essay

Cooperation Between the Automobile Company Honda and the Government of Japan - Essay Example It is also considered the second largest automobile manufacturing country in the world; it also has the largest electronic goods industry as well as one of the most innovative countries in terms of patent filings (World Intellectual Property Organization, 2011). With much competition from other countries, Japan has shifted its focus on high technology and highly specific goods, including optical goods and hybrid cars. Japan is also known for its credit issuances with its trade surplus and investment surpluses (Chandler, 2011). It also has 13.7% of global private financial assets, registering at about $14.6 trillion (Hindman, 2010). About 68 companies in the Fortune 500 are found in Japan, and the Tokyo economy alone represents the largest metropolitan economy worldwide. Since 1960, Japan has enjoyed massive economic growth and development. Even in the aftermath of significant destruction during the Second World War, Japan was able to register significant gains in its economy and deve lopment. Like other countries in the world, it too has experienced periods of downturns in its economy. In 2010, it was deposed by China as the second largest economy in the world (Lah, 2011). In the early to late 1980s, the increase of their stock and real estate prices, their economy experienced the Japanese asset price bubble, and this period ended when the Tokyo Stock Exchange during the early 1990s crashed (Lah, 2011). Its economic growth rate suffered significantly during the 1990s. From 2001 to 2010 however, it was showing signs of significant recovery as it managed to perform better that Europe and the US (The Economist, 2011). Japan is considered a... This essay presents a retrospective comprehensive analysis of the economic development of automobile company Honda against the background of socio-economic development of Japan. Just as Japan developed into one of the world’s largest economies, its MNCs, including Honda became one of the world’s top automobile corporations. Honda is a Japan-based public corporation which is primarily involved in the manufacturing of automobiles and motorcycles. Since the end of the 1950s, it has been considered the largest motorcycle manufacturer as well as the largest manufacturer of internal combustion engines in the world. In 2008, it even surpassed Chrysler as the fourth largest automobile manufacturer in the US. Japan is considered to be the third largest economy in the world following the US, and the People’s Republic of China. In 2011, the International Monetary Fund declared that the per capita GDP of the country was at $34,362, the 24 highest GDP in the world. It is also considered the second largest automobile manufacturing country in the world; it also has the largest electronic goods industry as well as one of the most innovative countries in terms of patent filings The development of Honda as an MNC is significantly related to Japan’s socio-economic development. The corporate culture of any MNC is often affected by the political and the socio-economic culture of the country as a whole. Japan has established itself as a technological innovator, capitalizing in electronic developments as well as industrial innovations