A problem of some importance should be mentioned here which can hamper even widespread, large-scale, industry-based development. The working of capital markets in most economies—developed as well as developing—ensures that the outcome is exactly the opposite. The latter included education, age, sex, and urban—rural location.
This finding suggests a model of entry and survival of small firms which is rather different from the classical model of new firm entry, which stresses that the motivation is the prevalence of excessive rents in the existing industry. Thus, although employment is large in the short run, the rate of expansion of demand for manufactured output is much less than would otherwise be the case.
Production of garments and leather products and assembly of final electronic items are increasingly undertaken by large firms as they have the capacity to deliver large consignments of these products.
Yoshii Minako, the Tokyo university lecturer who is a plaintiff, says that the fact that her son has a different surname has not affected their relationship. A problem of some importance should be mentioned here which can hamper even widespread, large-scale, industry-based development.
But an important point to note here is that, since the superior labour demanded by large firms has to acquire firm-specific skills for efficiency, the supply of such labour to the individual enterprise would be inelastic. These products are purchased in bulk by large retail chains in developed countries at low prices.
They are now demanding damages on the basis of sexual discrimination, a case that is expected to take two years in the Tokyo High Court.