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Unformatted text preview: eve efficient levels of
cooperation and team-work, work organization must be structured so as to separate workers who are in direct competition with
each other (hence job rotation).
14 11 OXFORD REVIEW OF ECONOMIC POLICY, VOL. 16, NO. 2 (iii) What Are Its Disadvantages?
There have been, however, a string of criticisms of
the Japanese system even before the problems of
the 1990s emerged. Broadly, it was seen as having
a tendency to generate barriers to the creation of
new business and, therefore, to hamper creativity
and innovation. It was also blamed for the apparent
tendency to over-investment and resource misallocation which generated poor returns to capital.
More specifically, the dominance of large, interconnected firms, together with underdeveloped (and
over-protected) financial markets, resulted in poor
access to finance for small and medium-sized firms,
and little venture capital for risk-takers (OECD,
1996). When this is combined with the strength of
internal labour markets and thus the lack of an
external labour market for mid-career, managerial
workers, it is argued that the system prevented
creative new entrepreneurs from starting n...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.
- Summer '13