Case | HBS Case Collection | September 1992 (Revised March 1998)

Japan Confronts an Interdependent World

by George C. Lodge


Traces the evolution of Japan's economic strategy from 1972 to 1992. Describes the collapse of the Japanese stock market in the spring of 1992, raising the question: Is this the end of Japan's miraculous growth? To help students consider that question, the case describes Japan's industrial and technology policy and reviews key economic events during the period, such as the Nixon shock, the oil shock, the Plaza accords and endaka (rising yen value), increasing U.S. debt, the U.S. recession, and the declining value of the dollar. Written from the point of view of a Japanese government policymaker.

Keywords: Policy; Financial Markets; Technology; System Shocks; Borrowing and Debt; Financial Crisis; Government and Politics; Growth and Development; Situation or Environment; Japan; United States;


Lodge, George C. "Japan Confronts an Interdependent World." Harvard Business School Case 793-034, September 1992. (Revised March 1998.)