The myth of Japan's low-cost capital.

摘要: The low rate at which U.S. companies are investing in manufacturing and the resulting decline America's competitive position has been a topic of grave concern for more than decade. During that time, critics have offered many excuses this shortsighted investment behavior. Yet one excuse steadily gained adherents is becoming something an article faith--that is, capital United States expensive other countries, particularly Japan. It both popular appealing argument. authors W. Carl Kester Timothy A. Luehrman, professors Harvard Business School, warn argument not only false but also dangerous. They assert empirical evidence does support claim sector persistently faced significantly higher average costs Japanese sector. argue differences isolated temporary, broad persistent. To prove their point, Luehrman critically dissect common wisdom academic studies on topic. conclude new global economy, all companies--Japanese, American, European, others--must compete same capital. Some will succeed obtaining it temporarily favorable terms, because they efficiently organized governed. But as long alleged international cost-of-capital gap excuse, managers run risk retaliating counterproductively against trading partners or doing nothing inside corporations. In short, should stop complaining about how much worry to manage after it's raised.