An Ocean Apart : Explaining Three Decades of U.S.-Japanese Trade Frictions

Closing a critical gap in the literature examining the strained relationship between the U.S. and Japan, this book synthesizes the economic, political, historical, and cultural factors that have led these two nations, both practitioners of capitalism, along quite different paths in search of different goals. Taking an objective, multidisciplinary approach, the author argues that there is no single explanation for Japan's domestic economic or foreign trade successes. Rather, his analysis points to a systemic mismatch that has been misdiagnosed and treated with inadequate corrective measures. This systemic mismatch in the corporate strategy, economic policies, and attitudes of the U.S. and Japan created and is perpetuating three decades of bilateral economic frictions and disequilibria. As long as both the U.S. and Japan deal more with symptoms than causes, bilateral problems will persist. This book's unique analysis will encourage a better understanding on both sides of the Pacific of what has happened, is happening, and will continue to happen if corporate executives and policymakers in the two countries do not better realize the extent of their differences and adopt better corrective measures. Contents......Page 6 Introduction......Page 8 Acknowledgements......Page 12 Acronyms......Page 14 I: WHAT HAPPENED......Page 16 1 Defining the Nature and Causes of Structural Problems in U.S.-Japanese Trade Relations......Page 18 2 A History of Contemporary Bilateral Trade Relations......Page 33 3 An Uncompromising Japanese Interpretation of Trade Frictions......Page 48 4 An Uncompromising U.S. Interpretation of Trade Frictions......Page 69 5 How Not to Explain Bilateral Trade Problems: Myths, Distortions, and Half-Truths......Page 103 II: WHY IT HAPPENED......Page 118 6 The Domestic Foundations of Japan's Foreign Trade Performance......Page 120 7 The Domestic Foundations of U.S. Foreign Trade Performance......Page 154 8 Divergent International Economic Policy Strategies......Page 179 9 The Asymmetrical Bilateral Negotiating Process......Page 203 III: CONCLUSIONS......Page 224 10 Synthesizing the Arguments......Page 226 11 Minimizing U.S.-Japanese Trade Frictions in the Future......Page 248 Selected Bibliography......Page 262 C......Page 266 I......Page 267 K......Page 268 R......Page 269 V......Page 270 Z......Page 271 A unique multi-disciplinary insight into the context and dynamics of U.S.-Japanese economic relations.