Japan Inc.

Categories: International, Forex

A semi-pejorative term associated with the heyday of modern Japan...in the '80s...when disco ruled and Japan was enormously powerful, buying tons of marquis American properties and other iconic Western properties, from Pebble Beach to Firestone Tires.

The notion of the country as an incorporate business refers to their Keiretsu system, wherein the company competed lightly against other Japanese companies...and heavily in teams against the rest of the world. As if the entire country, backed by extremely favorable tax and government regulatory policies, was one company rowing a boat oh so effectively.

It worked.

Until it didn't.

Lack of risk-taking/seeking ended up making the country's companies fade away as powerful entities. Why didn't Walkman-creating SONY become Apple?

Find other enlightening terms in Shmoop Finance Genius Bar(f)