Final answer:
The correct term for the organizational arrangement in Japan where a large group of companies are connected by cross-ownership and other ties is 'Keiretsus.' The correct option is B.
Step-by-step explanation:
Organizational Arrangements in Japan
The organizational arrangement in Japan where a large group of vertically integrated companies are bound together by cross-ownership, interlocking directorates, and social ties is known as Keiretsus. This system is characterized by a network of businesses that includes suppliers, manufacturers, and distributors, all linked through partnerships, equity stakes, and sometimes historical associations. Unlike vertically integrated corporations which manage all aspects of a product's lifecycle within a single company, Keiretsus consist of separate, independent companies that act in harmony to ensure mutual prosperity and stability within the Japanese economy.
In contrast, a Maquiladora refers to factories, primarily located in northern Mexico, where workers assemble imported materials into finished goods for export. Chaebols are South Korean conglomerates, typically family-owned, with a similar structure to Keiretsus, but with generally a single family exerting control over the group. The question, however, specifically asks about the Japanese configuration, where the correct answer is Keiretsus.
This business strategy has been part of Japan's post-war economic development, with such arrangements helping Japanese companies to diversify risks, share technology and information, and establish strong presences in various industries. The Keiretsu system has had a significant impact on the global economy through their efficiency in supply chain management and their capability to industrialize rapidly by capitalizing on both internal and external resources and relationships.