Italy and Japan produce cars; however, Italy can do it faster, with higher levels of quality and with higher profit margins. Hence it is concluded that it has a clear advantage in this particular industry. On the other side, Japan could be better off focusing its limited resources and expertise on other kinds of cars or a different sector of the economy. Therefore, Italy’s manufacturing of luxury vehicles and Japan’s production of mass-produced vehicles both have significant advantages (VoÅ¡ta and Kocourek, 2017). A global supply will support the expansion in the production of Italian cars, as these products are in demand all over the world.
Italy provides firms with a solid industrial foundation, as well as R&D, technology, and design expertise that is very well. Italy’s important transportation center and entrance to the European Single Market are made possible by its advantageous geographical area. Japan appears to have a significant comparative advantage in production and an equally comparative substantial deficit in primary products (Carbaugh, 2019). In the wake of the triple emergency of seismic events, tsunami, and nuclear accident, Japan’s high-tech elements are a critical part of global production networks (Prause, 2019). The global supply will support the expansion of Japan’s products as they have a monopoly in this industry, and the distribution of products will benefit the global community.
Numerous issues limit Japan’s policies to become a prominent participant in the world of services. Due to excessive internal rules, its own domestic service industry lacks competitiveness. For instance, because of these rules, Japan is not a popular or competitive travel destination worldwide; moreover, the population does not study English to attract foreigners (Bradford, 2019). The financial industry in Japan is also not competitive since it is intertwined with government and corporate networks so tightly.
It is essential to address the dual nature of the Japanese labor market since doing so will reduce inequality while also promoting growth. This calls for a comprehensive strategy that includes improving social healthcare insurance for non-regular workers as well as improving workplace protections for regular workers. Increased researcher mobility and an increase in the proportion of public research money for universities that are given out on a competitive basis would help to improve collaboration between universities, the government, and research institutions. Enhancing postsecondary education will not only improve human capital but also strengthen the role of universities in innovation. This may be done, in part, by increasing competitiveness and globalization.
The COVID-19 issue has made several of Italy’s structural issues, such as the country’s wide regional disparities, age, gender, productivity, and high levels of public debt, worse. Increasing the efficiency of governmental administration is a top objective for the recovery (Barbieri et al., 2022). This should focus, in particular, on better coordination and execution across all governmental levels as well as public investment management. Enhancing the public sector’s effectiveness would increase the impact of these changes and the private sector’s reaction to recovery efforts.
More equitable implementation of the law would result from judicial reforms to enhance administrative procedures and increase the use of mediation and arbitration techniques. Broadening the income base and better targeting social benefits are the benefits of growing digitalization. The introduction of approachable digital interfaces should go hand in hand with a dedication to streamlining administrative processes at all levels of government. Compliance would be facilitated, uncertainties would be reduced, and costs would be reduced with a clear timeline to shorten regulatory processes selected according to their cost to companies. For both domestic and international businesses, lower investment costs would result from more consistent laws across areas.
References
Barbieri, T., Basso, G., & Scicchitano, S. (2022). Italian workers at risk during the Covid-19 epidemic. Italian Economic Journal, 8(1), 175-195.
Bradford, A. (2019). It’s not all about English! The problem of language foregrounding in English-medium programmes in Japan. Journal of Multilingual and Multicultural Development, 40(8), 707-720.
Carbaugh, R. (2019). International Economics (17th ed.). Cengage Learning.
Prause, M. (2019). Challenges of industry 4.0 technology adoption for SMEs: the case of Japan. Sustainability, 11(20), 5807.
Vošta, M., & Kocourek, A. (2017). Competitiveness of the European automobile industry in the global context. Politics in Central Europe, 13(1), 69-86.