Essay: Rationalization of the industry
There was a Rationalization Promotion Law that was adopted in 1952 March helping in the implementation of the policy of supporting and protecting the domestic manufactures that was developed by the government (JAMA, 2008). Through this new law, the automobile industries among others had to be modernized and restructured. In order to ensure success of the automobile industries, the new law ensured tax advantages and low interest-rated government loans. The production costs as well as improvement in the quality of the products produced ensured competitive advantage in the market.
Restructuring of the industries dealing with auto parts was also accomplished after JIS, Japan Industrial standards regulations was created. There was also a subsidies system introduced in the year 1952. The measures of subsidies and other regulations were geared towards quality improvement and costs reduction strategies.
There were industrial and economic regulations that were imposed after the war to help boost the economy, which had dropped significantly. All the controls done on passenger car production were abolished on 1949 October. There was establishment of an exchange rate in 1949 April and new legislation meant to promote international growth economy in 1950. The new legislation passed on in 1950 also enabled capital transactions and promoted exports (JAMA, 2008).