The Internationalization of the Japanese Economy

The internationalization of the J apanese economy, or the shift from an export-Ied to a domestic demand-Ied growth, is one of the important cu ne nt developments in the world-economy. lt involves the interaction of a variety of economic, social and cultural factors which many observers outside of Japan need to appreciate in order to understand what the process entails. Drs. Higashi and Lauter have written a book which is providing de tailed insight into the policy alternatives which the Japanese government has chosen to achieve the objectives of the internationalization process. Moreover, they have also analyzed the potential problems which sur round the implementation of the complex policies. I believe that their book is a valuable addition to both the academic and the generalliterature on Japan's efforts to change its role in the world economy and to contribute to the well-being of people everywhere. Michio Watanabe Tokyo, March 1987 Minister of International Trade and Industry December 1985-July 1986 Minister of Finance July 1980-November 1982 Xl The Internationalization Of The Japanese Economy 1 THE PATH TO ECONOMIC POWER Japan, known around the world as a smalI, resource-poOf island country, has experienced a greater than tenfold increase in its gross national product (GNP) in real terms since 1950 Front Matter....Pages i-xiii The Path to Economic Power....Pages 1-33 The Origins of Internationalization....Pages 35-63 The Action Program and Ongoing U.S.—Japan Trade Conflicts....Pages 65-97 The Maekawa Commission Report and the Potential Constraints on Internationalization....Pages 99-138 Trends and Changes in the Domestic Economy....Pages 139-164 The Domestic Policy Options....Pages 165-196 The International Policy Options....Pages 197-221 Afterword....Pages 223-229 Back Matter....Pages 231-273