As mentioned in my previous posts the practice of keiretsu is common in Japan and has been a key aspect of Japanese corporate culture for many years. However, it is not allowed in the United States and many other countries around the world.
There are several reasons why keiretsu is not allowed
in the United States. First and foremost, it violates the principles of free
competition and market efficiency. Keiretsu arrangements can lead to the
formation of monopolies, reduce market competition, and limit consumer choice.
This is particularly problematic in the United States, where antitrust laws are
designed to protect the interests of consumers and promote fair competition in
the marketplace.
Another reason why keiretsu is not allowed in the
United States is that it can lead to conflicts of interest. For example, a
keiretsu member company may be required to prioritize the interests of the
keiretsu over the interests of its shareholders. This can result in companies
making decisions that are not in the best interests of their shareholders and can
reduce accountability and transparency in business practices.
In addition to these concerns, keiretsu can also limit
the ability of companies to raise capital and access new markets. For example,
a company that is part of a keiretsu may be restricted from seeking investment
from outside the keiretsu or from entering business partnerships with companies
outside the keiretsu. This can limit the growth potential of individual
companies and the keiretsu as a whole.
While keiretsu is a common practice in Japan and has
been a key aspect of Japanese corporate culture for many years, it is not
allowed in the United States and many other countries around the world. This is
due to concerns about free competition, market efficiency, conflicts of
interest, and limitations on the ability of companies to raise capital and
access new markets. Japanese businesses operating in the United States must be
aware of these restrictions and must structure their operations in a manner
that is consistent with local laws and regulations.
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