The positive effects of political system in UK
Britain has a capitalist advanced economy, which is very open. It can be simply considered a combination of a social-oriented European system and a market-oriented American system. In philosophy, the United Kingdom has a long tradition of classical liberalism, which is expressed as an attitude towards economic affairs. In addition to health and education and several key areas, the economy is basically a private economy. (Haven 2014) Many important utilities, including railways, electricity, gas, electricity, telecommunications and postage, were publicly and highly regulated, but with the collapse of the British colonial system and the economic recession, the British government relaxed public restrictions, the implementation of privatization system, the more obvious is the railway industry. The railway system has attracted new interest as an important social infrastructure, and emerging large-scale railway projects have started in many parts of the world. One of the main reasons is that the impact of rail transport on the environment is less than that of other forms of transport. People also rediscover the unique advantages of the railway, can effectively move a large number of people and the number of goods. In the UK, the birthplace of the railway, in 1998 began construction of the country's first high-speed train service alone railway system. The requirements of the system include superior environmental performance, safety and comfort. Therefore, Britain chooses to cooperate with Hitachi.
Hitachi Group was founded in 1910, at present it is Japan's only integrated railway system suppliers. Hitachi is also one of the world's largest integrated multinational companies, and Hitachi Group is involved in the railway business earlier and is the only comprehensive railway system supplier in Japan. Since the launch of the first large-scale DC locomotive manufactured in Japan in September, Hitachi Group has made breakthroughs in the railway sector. Hitachi Group's rail business covers areas such as vehicle manufacturing, operations management, signal control, information services, and infrastructure maintenance. (Lincoln 2012)
Japan's Hitachi Group chose to use the UK as its first overseas railway market, because Britain is the first country to complete the industrial revolution, its political system is very mature, foreign companies have many positive effects. first, the threshold of foreign investment into the low. First, because the British take the railway privatization system, many state-owned railway industries was privately contracted, the process of privatization of the railway to speed up, which also led to the original British local enterprises almost all out of the railway rolling stock manufacturing industry, and thus in the United Kingdom did not have any competitors. (Hitachi rail boss hails UK Choice 2014) In addition, due to many countries require foreign investment vehicles should have a certain localization rate, which means that foreign-funded enterprises must produce part of the domestic vehicles or take cooperation with domestic enterprises in the way, but the British government does not have the relevant provisions, which for foreign investment The UK market to create conditions.
Secondly, Vehicle renewal demand. Since the disintegration of the British National Railways in the early 1990s, many British vehicles have served overtime. From the current situation of the vehicle, the average life of the use of vehicles has reached 15 to 17 years, large and diverse vehicle demand and diverse. Obviously, because of the collapse of overseas political colonial system, the British financial problems, the British government unable to solve the problem of railway vehicle renewal, the public system can only be replaced by a private system.
Thirdly, expand new members to join the railway market. At that time, cooperation with the British vehicle suppliers have repeatedly delayed delivery, delivery of vehicle performance, non-compliance and other issues, the United Kingdom from the road to improve the competitiveness of equipment market point of view, to attract new suppliers to enter the British railway market. (Mark 2014)
Fourthly, High technical threshold. The technical threshold for railway vehicle certification in the UK is higher, which means that the government set a high technical standards and safety standards, If the company's technical level does not meet the standards, it will not be able to enter the British railway market, Hitachi Group can do market monopoly. (Hakkyong 2014) The UK to prevent the railway system from being fully controlled by the private sector, the British government has set a very high technical threshold. While Hitachi Group is excluded because Hitachi Group employees are locals, including management and grassroots staff.