Pros and Cons if the Japanese MITI Model Essay Example

and establishing a framework for importing technological imports into the country (Tekita 2001, p.43). The proposed framework for the Australian government therefore poses to gain significantly if similar benchmarks were introduced with regard to setting price indices and technology provisions for technological products entering the market. This could be especially feasible in instituting key import protection guidelines and subsequent introduction of tax incentives and subsidies into the existing business framework (Palumbo and Herbig 1994, p.24). This could to significant improvements when considering the Australian economy variables leading to the emancipation of critical international and local trade elements.

Cons of Implementing the Japanese MITI Model in the Australian Context

After an assessment of the Japanese MITI model implementation framework, there exist significant contextual differences. “When MITI originally planned the compilation of this history, emphasis was placed at the initial stages on Japan’s rapid recovery from war ruin subsequent rapid economic growth, and eventual achievement of an economic status that gained global attention” (Sumiya 2000, p.vi ). Some of these include the aspect of periodic differences during which the strategy was implemented in the Japanese context and the proposed move in the Australian context. For instance, the introduction of price control practices could adversely affect business potential in certain sectors. “Government controls and intervention practices distort market prices and serve as barriers to market entry” (Thakur and Srivastava 2001, p.382).

Another aspect is the introduction of the protectionism formula in the business environment, which could potentially affect delivery mechanisms and subsequent development of business potential. “As a result of the Japanese government unwillingness to remove the barriers that are resulting in such untenable trade deficits, many countries are threatening to

retaliate with anti-Japanese protectionist rules and practices” (Thakur and Srivastava 2001, p.382). This when looked at in the Australian context, could potentially affect trade relations unless significant modifications are made to the plan in order to avoid a similar occurrence.