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The article argues that there are more M&As in Japan, which might be true, but a lot of the deals are foreign companies buying Japanese companies (e.g., Foxconn buying Sharp). Not to mention, it's pretty ridiculous to assume that Japanese companies would suddenly become competitive after a merger.
The household wealth argument is even more ridiculous. If this was true no country would ever need to worry about their demographics. Besides Japan's wealth level isn't great these days with yen being so weak.
The only positive trend about Japan these days is probably their investment in semiconductor production now. It's also completely overwhelmed by international tourists which helps a bit I guess.
It's not doing nearly as poorly as China is doing though.
Japanese might save a lot, like all Asians. But Japan's wealth accumulation isn't anything special, certainly not remotely comparable to Switzerland.
Often, one of the primary purposes of a merger is to increase competitiveness through economies of scale.
The Japanese household wealth argument is used in the context of Japan and is not suggested as having global applicability as you imply.
Often, one of the primary purposes of a merger is to increase competitiveness through economies of scale.
How does foreign companies buying Japanese companies increase Japan's competitiveness through economies of scale?
Quote:
Originally Posted by ApprenticeWineSnob
The Japanese household wealth argument is used in the context of Japan and is not suggested as having global applicability as you imply.
That makes zero sense. The Japanese population have been very old for a very long time. It didn't suddenly become a super-aged society. If the household wealth has trickled down to the younger generation, the signs would have shown already, but they haven't.
Japan's inheritance tax is also some of the highest in the world. Those who inherit large swaths of land would often even go bankrupt due to the taxes. His argument is ludicrous.
How does foreign companies buying Japanese companies increase Japan's competitiveness through economies of scale?
That makes zero sense. The Japanese population have been very old for a very long time. It didn't suddenly become a super-aged society. If the household wealth has trickled down to the younger generation, the signs would have shown already, but they haven't.
Japan's inheritance tax is also some of the highest in the world. Those who inherit large swaths of land would often even go bankrupt due to the taxes. His argument is ludicrous.
The article does not state that mergers must be between Japanese and foreign companies. That's you leapin to an unwarranted conclusion. It does say there will be increased opportunities for mergers.
Not only that, but Japan has a particularly poor record of assimilating foreigners. There are people of Korean descent whose families have been in Japan for generations now, and they're still not fully accepted.
To be honest, it goes both ways. Koreans are also very unwilling to assimilate foreigners and there is a deep seeded hatred towards Japan, due to past atrocities and the lack of a willingness to acknowledge (much less apologize) for these actions during the occupation (up until WWII). Both of these countries are extremely homogeneous, are experiencing deep demographic declines due to low birthrate and unwillingness to address the root causes. Part of this stems from immigration (as you and others have noted). But, it's also due to the overall culture/lifestyle. It's about work/work/work, where there is no time/consideration for raising a family. Many folks believe that this will be an unnecessary expense that will hinder their career growth. In addition, especially in Korea, there's an incredible amount of social pressure to show you've made it. This is present with body image (and the plastic surgery that goes with it), along with driving fancy cars and having expensive clothing. I thought the materialism in America was bad, but when I lived in Korea, it was on another level entirely. I felt bad for the people there. Most young people I've met are absolutely miserable. The quality of their lives is/will be inferior to those of their parents.
Yep. The Japanese and Koreans have historically been tribal excluding foreigners. I think this attitude is changing somewhat. In both countries there is some degree of integration with multicultural marriages and others on work permits who may seek citizenship. It’s either diversify the gene pool or perish.
In Singapore, HK, Macao, South Korea and Taiwan, couples had more children in the past but nowadays youths dont want to because 2 or more children lower quality of life of poor families. There were too many cases of economic and housing problems experienced by such families in the past, the youths now have learnt these mistakes made by their parents and grandparents. Women have higher education than before dont have to rely on men for money. Marrying and giving birth lost popularity in the rich asian economies unlike most of asia. In the past, youths had social pressure to get married before 30 years old
That central UN projection has China’s population roughly halving to 766.67 million by the end of the century.
Just as likely is that China’s total fertility rate will slip even lower. The Shanghai Academy of Social Sciences expects a drop to 1.1, pushing China’s population down to 587 million in 2100.
That central UN projection has China’s population roughly halving to 766.67 million by the end of the century.
Just as likely is that China’s total fertility rate will slip even lower. The Shanghai Academy of Social Sciences expects a drop to 1.1, pushing China’s population down to 587 million in 2100.
Better buy that cheap China toaster now. Might not be available in the year 2100.
I think its sensationalism.
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