ABSTRACT
This chapter looks at the factors that brought about industrialization, particularly the development of heavy and chemical industries. It also looks at what is considered to be one of the special characteristics of Japan’s industrial organization, the subcontracting system. The present industrial structure is largely the result of a sharp fall in the proportion of primary industries, and a corresponding rise in that of secondary and tertiary industries during High Economic Growth Period. By the terms of the treaty signed when Japan reopened the country for foreign trade, the government forfeited the right to fix tariffs, and was therefore unable to indulge in protectionism. The chapter discusses Japan’s industrial structure from the point of view of the international division of labour and the development of foreign trade. In reality, a great number of Japan’s small companies boast a high level of technology and efficiency, and are valued by their parent company as a vital link in their organization.
