Updated on January 12, 2024Table of Contents
Keiretsu, pronounced “keh-reh-tsu,” is a Japanese term that refers to a loosely knit association of businesses and industrial enterprises that often cooperate in a variety of ways. These associations are typically dominant in specific industries and play an important role in the Japanese economy.
Keiretsu flourished during the latter half of the 20th century and were instrumental in Japan’s rapid industrialization. However, their dominance has waned in recent years due to changing economic landscape and challenges from global competitors. Despite the decline, keiretsu still play a significant role in the Japanese economy and hold considerable influence in certain industries.
What is keiretsu in Japanese business?
Keiretsu is a Japanese term referring to a group of interlinked businesses with cross-ownership and close relationships, usually involving a central bank that supports the group financially.
What are examples of Japanese keiretsu?
Major examples include Mitsubishi, Mitsui, Sumitomo, Fuyo, Sanwa, and Toyota, each consisting of interconnected companies across industries, from manufacturing to banking.
Is Toyota part of a keiretsu?
Yes, Toyota is a major example of a vertical keiretsu, forming a close network with its suppliers, manufacturers, and distributors.
What is the difference between keiretsu and zaibatsu?
Zaibatsu were large family-controlled business conglomerates before WWII. After WWII, keiretsu replaced zaibatsu with a more cooperative, cross-shareholding model without central family control.
Table of Contents
Categories
Pocketful is an advanced trading platform that empowers traders with cutting-edge technology. We provide innovative tools and resources to make trading more accessible and practical.
