The Japanese have had phenomenal impact on world markets. Many industries, such as electronics, cameras, watches, motorcycles, machine tools, automotive products, shipbuilding, and even some aspects of aerospace are either dominated by Japanese firms or are heavily impacted by them.

Many people mistakenly attribute this phenomenon strictly to cultural differences. The vision of dedicated Japanese workers giving their life to the company for substandard wages surely accounts for the difference, they reason. Of course, this view doesn't always square with reality. First, Japanese factories have some of the highest wage structures seen outside the United States. Second, this "Japanese miracle" is also happening outside Japan. Most Japanese automobile manufacturers have successful plants located within the United States; all of them manufacturing quality automobiles utilizing American workers. When Matsushita bought a U.S. television plant in Chicago, they managed to maintain the 1,000 hourly employees while trimming the...