Changes in economic structure Corporate restructuring Changes in economic structure During the 1970s, Japan had to weather two energy crises as well as the effect of a steadily appreciating yen.
Japan is highly dependent on imported energy and raw materials from abroad.
Hikes in the price of both the energy and raw materials caused the nation to suffer from a long period of stagflation. Japanese corporations had to improve their energy efficiency and conservation of materials. Those that survived the long period of recession emerged fitted to face the challenges of the decade that followed. This forced many corporations to realign themselves away from traditional heavy industries and move instead into new and growing industries such as information technology, new industrial materials and even biotechnology. Companies that were once extremely competitive internationally in shipbuilding, iron and steel or textiles diversified into expanding fields such as biotechnology, health care, entertainment or the development of theme parks.