4450 ass 1 probs 7,8

4450 ass 1 probs 7,8 - effective mobilization of domestic...

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7) The impact of cooperation on product quality can be shown by Cheng (2001), “an association of Taiwanese shoe-makers agreed among themselves to initiate export quality inspection and petition the government to implement with public authority.” In Taiwan’s case, private individuals took the initiative, while the government served and contributed their “good office.” The result of statistical discrimination has given individual Taiwanese firms little incentive to unilaterally upgrade their quality levels, and under some conditions, socially beneficial quality upgrading can be induced by industrial consolidation (as done with Taiwanese shoe-makers). 8) The effective development and utilization of Japan’s labor force, as well as the
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Unformatted text preview: effective mobilization of domestic saving to support the development effort is what caused the Japanese economy to be successful in the early decades after World War II. The performance of the Japanese economy is largely due to its labor-related institutions, and “the dualistic labor market is apparently the source of strength for the Japanese economy” (Wan 2006). One can attribute national consciousness rather than profit motive as the source of Japanese success. Japan’s quality control merged with the ‘small team’ principle to become the widely adopted system of the ‘quality control circle.’...
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This note was uploaded on 06/25/2009 for the course ECON 4450 taught by Professor Wan during the Spring '09 term at Cornell.

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