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Keiretsu

Keiretsu are Japanese business combinations that may involve as many as 50 firms that are related through a large trading company or bank. The companies are coordinated through interlocking directors. A keiretsu is an "intricate web of relationships that links banks, manufacturers, suppliers, and distributors with the Japanese government". Horizontal keiretsu are headed by major Japanese banks and include Mitsui, Mitsubishi, Sumitomo, Fuyo, Sanwa, and Dai-Ichi Kangyo Bank Groups. Vertical keiretsu are industrial groups connecting manufacturers and part suppliers or manufacturers, wholesalers and retailers. Vertical keiretsu include car and electronics producers such as Toyota, Nissan, Honda--Matsushita, Hitachi, Toshiba, and Sony.



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