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Keiretsu

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Keiretsu
A network of Japanese companies organized around a major bank. The term is also used outside of Japan to describe how a large corporation with many subsidiaries and associated firms can manipulate revenues. For example, firm A and B are controlled by firm C. Firm A is forced to buy its input from firm B at a high price. As a result, A is unprofitable and B is very profitable.


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The Keiretsu Forum selected GTG from scores of entrepreneurs who made 10-minute presentations to the group's deep-pocket members in March, said Rahilly.
While the pyramidal tier structure has long dominated the relationship between carmakers and parts suppliers throughout the world, the keiretsu system kept Japanese suppliers especially bound to OEMs because of cross shareholdings.
 
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