Is Globalization a Major Problem for Japan?
There's an interesting article in the India Times on the impact of globalization on Japan. The author notes that the Japanese stock market has had a lackluster performance this year, which he attributes to stagnant private consumption, which in turn reflects the globalization that puts a lid on wage increases. Business investment has been responsible for the growth in the Japanese economy, but the rise in private consumption that had been expected hasn't kicked in.

While Japan's kept its economic system protected from much of the impact of globalization in the 1990s, the rise of China has forced it to change course. Although the immediate impact has been positive in terms of rising GDP, much of the longer term effect will be negative for the Japanese worker. These arguments follow much of the reasoning of Morgan Stanley economist Steven Roach. What Japan needs, says the author, is greater productivity and increased entreprenenurship.