<P> In the 1920s, government officials maintained close relations with the zaibatsu, and the roots of their influence still hold strong . The keiretsu have great influence on Japanese industrial and economic policy . The preferential buying habits of the keiretsu kept foreign investors and foreign goods out of their markets, which America criticized as "barriers to free trade". This enabled the keiretsu to enjoy monopoly privileges over the Japanese market, thus maintaining high prices for their goods, as they had full dominance over the price and distribution of products and services throughout the supply side . It is believed that due to this practice, Japan in the late 1980s imported far less than it should have ($40 billion less as per a report by the Brookings Institution). </P> <P> In such a work environment, the probability of an employee to remain working in the same company for his entire working life was very high . Moreover, this framework allowed rapid co-operative development (sharing vital information, reduction in cost of R&D and higher quality products) of the keiretsu . </P> <P> During the occupation of Japan, under the Supreme Commander of the Allied Powers, General Douglas MacArthur, a partially successful attempt was made to dissolve the zaibatsu in the late 1940s . Sixteen zaibatsu were targeted for complete dissolution, and 26 more for reorganization after dissolution . However, the companies formed from the dismantling of the zaibatsu were later reintegrated . The dispersed corporations were reinterlinked through share purchases to form horizontally integrated alliances across many industries . Where possible, keiretsu companies would also supply one another, making the alliances vertically integrated, as well . In this period, official government policy promoted the creation of robust trade corporations that could withstand heavy pressures from intensified trade competition . </P> <P> The major keiretsu were each centered on one bank, which lent money to the keiretsu member companies and held equity positions in the companies . Each bank had great control over the companies in the keiretsu and acted as a monitoring and emergency bail - out entity . One effect of this structure was to minimize the presence of hostile takeovers in Japan, because no entities could challenge the power of the banks . </P>

What do you understand by keiretsu in the japanese model