Free-market capitalism seems to be the main characteristic that can be ascribed to rules of exchange, property rights and governance structures resulting from the leading conception of control described above. In fact, the dominant approach to all international economic development has presented itself in this form. Some important rules of exchange in the world economy are rules concerning trade. The governing institutions in this field define the rules of exchange. This governance structure comprises large international institutions such as the WTO and the IMF, that attempt to safeguard and dictate desired rules of behaviors that all players in the field should comply, and they try to settle problems tha

In the period after WW II, 'economic miracles' happened in Japan. These countries were admired for overcoming the so-called 'barriers to late industrializations' and were used as models for other developing countries. The theories as to how this region's economic success could be so large and widespread differed greatly and therefore, there was large disagreement on the underlying causes for the subsequent crisis as well. One of the theories that try to explain rising Asian Tigers and rising Japan is the “flying geese approach.” The approach can be visualized as a troop of geese, with one flying at head-position and the others following its lead. The “flying geese approach” suggests that Japanese companies starts a series of successful product and process innovations and spread them from developed East Asian countries to less developed East Asian countries. Therefore, they supported an advance in welfare for the whole region.

Japan's startling growth rates came to a halt at the end of the 1980s. The past decade has shown feeble economic growth. However, Japan's per capita income levels are now as high as those of any other industrialized nation. Given its size, Japan can be claimed to have successfully positioned itself as an incumbent in the field of the world economy. Indeed, it is the second largest national economy in the world today.

According to advocates of the free market economy, the economic success of Japan and other East-Asian countries is due to the fact that governments have allowed domestic firms to capitalize on their comparative advantage of low unit labor costs. Japanese and many other Asian countries engaged in labor-intensive, export-oriented production. Their economic growth was thus mainly export biased. In order to compete on world markets they even engaged in 'dumping' practices and tried to ban imports from other countries into their economy by imposing high tariffs and other trade barriers. There has also been a lot of protectionism of their own successful industries, mostly in the form of subsidies or cheap credits by government-controlled banks.

t occur within or between individual countries. Obviously the large players in the world economy implicitly determine the rules of exchange. Free trade, by opening markets for incumbent industries, is in the natural interest of the most powerful nations. The powerful role of industry in the political process will generally cause capitalist countries to seek to open the markets for its exporting industry while at the same time protecting import competing companies. (Fligstein, 2002)

Some topics in this essay:
High-Performance East-Asian, East Asian, Hong Kong, Europe Japan, Monetary Fund, WTO IMF, Thailand Malaysia, Japanese Asian, WW II, Matsushita Sumitomo, field world, world economy, economic relations, world economic, economic growth, rules exchange, south korea, field world economy, asian economies, field world economic, free trade, asian countries, world economic relations, period ww ii, developed east asian,