Anumber of economists link bubbles and financial crises in japan and asia to defects in corporate governance and arrangements of "crony capitalism" in which favors are traded between corporate, financial, and government leaders. some economists apply like arguments to the us. a. how is the japanese system of corporate governance different from that of the us? b. what links do economists draw between japan’s system of corporate governance and distinctive goals of japanese enterprise? c. what connection is drawn between distinctive goals of japanese enterprise and japan’s bubble economy of the 1980s? d. how are defects in corporate governance supposed to have affected the goals of traders in us financial firms? e. how did government policies in japan and the united states foster moral hazard among financial firms?

The correct answer is: In Japan, most of the shares are owned by members of a keiestsu . A family of companies with supplier, customer and financial ties. Japanese companies tend to continue to grow and diversify instead of profits.

In Japan, a leading bank generally owns 5% of the shares and other banks own a smaller percentage.

In the US UU work in the interest of the shareholder. Japanese companies did not care about stock prices or market confidence, but instead financed themselves by selling stocks or bonds. Instead, the main bank lent them the money they needed.

Jobs for life; Lifetime job security: reluctant to fire the main male employees. Companies pay small or no dividends.

In Japan, the inclusion of companies allows companies to work with each other and compete with foreign companies instead of other national companies.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.