Comparing and Contrasting Business Systems in Japan and China Essay

Comparing and Contrasting Business Systems in Japan and China - Essay Example The country’s economy is diverse unlike Japan’s which relies mostly on industries. China depends mostly on agriculture, industries and its cultural heritage (Zheng, 2013). The rate of economic change in China is relatively higher compared to that of Japan. Although Japan has had a significant growth in the late 20th century, China has improved its economic growth in the 21st century in a way that has made it among the best performers in the world. Natural disasters that have hit Japan for the last ten years have left the country at a loss in terms of its economic performance. The country, however, manages to retain a significant rate of economic growth. China has mostly relied on its population and size of the country for much of its improvement in terms of economic development (Blackford 2008, p. 25). China’s economic capabilities can be seen to be way ahead that of Japan. The country has more potential to grow into a super-economy. As mentioned earlier, the mai n challenge facing Japan remains the series of natural disasters that the country has faced. The disasters have left the country in economic turmoil considering the levels it managed to reach in the late 20th century. Japan can be seen to have employed the theory of development of management in a more efficient way than China (Zheng, 2013). This can be attributed to the capitalistic nature of the country. The theory underlines the fundamental guidelines that should be followed in order to have efficient management of businesses. This includes clearly outlining the goals of the business and distancing the business from its owner(s). The extent of owner involvement in the running of businesses in the two countries is... A business system can be defined as a methodical procedure or process used by owners of factors of production as a delivery mechanism for providing goods and services to customers. An efficient business system has the potential of accelerating economic growth in a country while still rewarding owners of the factors of production. On the other hand, a country that adopts inefficient business systems may lug behind in terms of economic growth. This calls for business systems analysts to be involved in the adoption and use of the various business systems in a country. The rate of economic change in China is relatively higher compared to that of Japan. Although Japan has had a significant growth in the late 20th century, China has improved its economic growth in the 21st century in a way that has made it among the best performers in the world. The country, however, manages to retain a significant rate of economic growth after the natural disasters. China has mostly relied on its population and size of the country for much of its improvement in terms of economic development. Japan and China are two of the leading economies in Asia. The countries have both similarities and differences in their business systems. Japan is purely a capitalistic state. China, on the other hand, is both a socialistic and capitalistic state. Although Japan’s capitalistic system has helped it achieve major economic goals, the threat posed by natural disasters still remains a major concern to the country’s economy. China, on the other hand, should adopt a purely capitalistic system in order to realize its full potential in the business sector. This is realistic considering the tremendous levels it has reached with a system that does not work efficiently in the business sector.

Paper #1 (Economic) Essay Example | Topics and Well Written Essays - 750 words

Paper #1 (Economic) - Essay Example The price elasticity of demands demonstrates how the demand for a product is affected by a change in its price. A simple mathematical formula which expressed the relationship and provides a way to calculate price elasticity is (% change in quantity / % change in price). There are several factors that can affect demand elasticity. These are availability of substitutes, amount of income available to spend on a good, and time (Investopedia, 2007). A substitute product is an item that might not compete directly with a particular product, but has similar characteristics and can replace the consumption for the original product. For example Pam spray is a substitute product for corn oil. A substitute product is the factor that influences elasticity the most. The higher the amount of substitute products available in the market that can replace a product, the more price sensitive a product becomes. A product with few substitute products that the consumer needs is considered to be in inelastic because changes in the price of the product will not affect the demand for the product that much. â€Å"Caffeine is an inelastic product because it lacks substitutes† (Investopedia, 2007). The level of income a person has is another factor that affects elasticity. A person might want a particular item, but if his economic reality does not allow him to afford the item then he is not considered in the demand equation of a product. The way income affects demand the most can be seen by a person’s consumption of a product he regularly purchases, for example soft drinks. If a person’s income decreases by half the most likely scenario is that this individual will lower his consumption of soft drinks, thus lowering the overall demand for the product. Time can convert an inelastic product such as tobacco into elastic if a person begins to lower his purchase frequency by reducing his consumption of the item over