Japanese Auto Industry
In order to promote the growth and development of the Japanese auto industry the government began its involvement by obtaining military trucks in 1937 from automakers like, Toyota, Nissan, and Isuzu. General Motors (GM) and Ford had already established factories inside Japan, the low tariffs in Japan helped further the incentive to develop foreign factories inside Japan. These foreign factories really hurt Japan’s small automobile manufacturers who could not directly compete with the mass production of Ford and GM and soon disappeared. The only manufacturers who could compete were those that received subsidies under the Military Automobile Subsidizing Law (Togo, 2007).
Prior to World War II the Japanese government implemented policies in order to develop the domestic automobile industry. The first policy that was established in 1918 called the Military Automobile Subsidizing Law. Under this new policy the military provided specific automakers subsidies in order to produce......
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