Upstream business strategically conducted by Japan.A form of processing trade in which Asian countries, including Korea, assemble and export them.

Photo by Urashimataro (licensed under CC0 1.0)

In business, upstream is basically advantageous

upstream business used to be a common practice.At that time, supply was scarce in the balance between supply and demand and supply were in short supply.The raw material is the most upstream and the final product is the downstream.Considering distribution, retailers sell to final consumers are the most downstream.If water doesn't flow, you can't do business, but in the age of oversupply, the story will change.The downstream retail stores are more powerful than the upstream manufacturing industry.Japan's 7-Eleven is a symbolic example of this, and OEMs want large companies to build private brands, and manufacturers want 7-Eleven to sell their products.

The Japanese business should control upstream

Japan has developed its upstream business.The strategy is to start with basic research, develop industrial machinery, and manufacture things require Japanese basic technology.Regarding the revision of export conditions for three strategic substances, including hydrogen fluoride, the South Korean government's insistence on supply chain integration means downstream integration, which is intended to put pressure on upstream manufacturing.

Lawmaker Matsukawa of the Liberal Democratic Party affirmed to the world that the global supply chain will not be in trouble.As they say, The world's supply chain never collapsed .