Economic Stability

How does internationalism contribute to the economic success and/or stability of Japan?

          Between the years, 1937 and 1945, Japan was actively participating in the global market as a "wartime commany". Over this time perid, about 24 percent accounted for manufacturing, 46 percent accounted for steel, and 70 percent accounted for nonferrous metals, and 252 percent account for machinery in production. This led to the rapid developmemt of Japan's economy.

          As the years progressed, these "wartime commanies" were converted to fit the strict peace-loving notion of the country. For instance, machine gun factories converted a non-militarized factory, one that produces sewing machines. Another example is the optical weapons factories, which were converted to factories that make cameras and binoculars.

          Internationalism can be defined as the cooperation of nationds working towards a common goal. After 1947, the United States formed a trade agreement with Japan, allowing the country to export to the United States. However, the U.S protected its domestic market. This had the effect of enabling the development of cartels, which are groups of suppliers and manufacturs that intend on keeping the prices at a high level and restrict competition. This agreement also had the effect of creating non-market driven factors in Japan's economy. Japan substantially benefitted from this international market with low tariffs. They were able to attain this by joining the General Agreement on Tariffs and Trade (GATT), which was a trade agreement that preceded the World Trade Organizatin (WTO). The country benefitted from the low prices of raw materials, such as oil, required for the development their industries.