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Close links to the USA promoted the growth of the Japanese economy to a great extent because they assisted Japan in various aspects like industrial, military protection and economic policies, both during their occupation and afterwards during the 2 Proxy wars, this laid the foundation for the foundation of the advancement of the Japanese economy.

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American financial aid and investment provided the critical foundation for Japan’s post-war recovery and industrial expansion.

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Due to closed links with the USA, Japan was able to benefit from the occurrence of the Korean and Vietnam War. Japan benefitted from the substantial demand for Japanese goods and materials by the US military. Hence, its industries experienced a rapid rise in production and exports. This created more jobs and income. Also prompted further investment into development and research to improve technology. Hence, Japan benefitted economically as a whole and reached full recovery.

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P1: Japan’s close ties to the USA allowed for the provision of financial aid post-war from the latter country.

Ex: The USA helped implement economic reforms in Japan

P2: Japan benefited from the USA’s economic and security policies during the Cold War era

Ex: During the Korean War from 1950 to 1953 and the Vietnam War from 1955 to 1975, the USA relied on Japan as a major supplier of war materials

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Thesis: Close ties with the USA contributed to the growth of Japan’s economy to the largest extent

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Thesis: Close ties with the USA contributed to the growth of Japan’s economy to the largest extent

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Shifted post war japanese policy, reduced military spending freeing up funds for other key sectors and infrastructural development which was instrumental in building up war torn Japan. Eg: 60% to 1%

USA also provided economic aid to japan post occupation and established its connection to the global market eg: admission into GATT

It is seen that USA is instrumental in building up Japan from its war torn state and even solidified its position and ties in the global economy, making it an important point

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Close links to the US did promote the growth of the Japanese economy. Strong partnerships with the economic superpower allowed Japan to benefit during the Korean and Vietnam wars, attract FDI and MNCs from the US, and sell its goods in an overseas market with limited taxes. Japan also did not have to maintain a large military, allowing it to spend more on developing its economy.

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Anti-thesis: it was local intervention by the japanese government that actually affected Japan’s economy to the greatest extent

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Anti-thesis: it was local intervention by the japanese government that actually affected Japan’s economy to the greatest extent

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Many governmental decisions led to Japan to quickly adapt in the global market. The establishment of MITI and its important role in directing the economy allowed for a very efficient and adaptive economy that thrived off global trends to maximise profit. Also, japans exploitation of the Bretton Woods system allowed it to benefit off trade deficits with US

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Evaluation: US links still most important

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Evaluation: US links still most important

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It was still the USA that provided the conducive environment which was perfect for any further economic directing and development by Japanese government. By providing almost immediate stability and economic growth to the Japanese and through technological exchange and continued Aid, the Japanese economy was largely successful due to the strong and stable foundation brought about by US links. Therefore, US links most important and developed Japanese economy to the greatest extent