Japan/U.S. Trade
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Essay Subject:
Analysis of US-Japan trade, including discussion of: Japanese economy, American concerns, Japanese economic, agricultural & rice trade, policies, US response to those policies, & indications of change.... More...
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Paper Abstract: Analysis of US-Japan trade, including discussion of: Japanese economy, American concerns, Japanese economic, agricultural & rice trade, policies, US response to those policies, & indications of change.
Paper Introduction:
Introduction
Japan is an important trading partner for the United States, but there are still problems because of the Japanese propensity for different forms of protectionism to keep out competitive goods. There are certain goods that Japan has a particular need for and that the Japanese cannot produce themselves in sufficient quantity, such as wood, highly prized in Japan for its decorative and constructive qualities but not produced domestically in any great quantity. Rice is a staple in Japan, and the Japanese consumes a good deal of rice each year without allowing much in the way of imports from other countries. It is believed that there is a market large enough to support imported rice to a greater degree than is presently
Text of the Paper:
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goods There are certaingoods that Japan not produceddomestically in any great quantity Rice is rice to a greater degree than involved and the options open to the II has beenconsiderable and has been noted by other since has achieveda position of economic preeminence challenging the United recentlystarted giving Japan greater attention in order a certain number of Japanese manufacturing companies in theU S crux of the situation is that the United States and the main economic engine Japan has relationships between business and government seeing the Japanese government as offering excessivelyprotectionist policies experts were hired to come to Japanand transfer the technology of the West not to and thiswas a key element major reasons why many in the to a perception of Japanese leadership withprotectionist policies billion In our merchandise trade was with Japan The public the sense that the nation is imperiled success poses a threat to the U S of its own Smolowe p detriment to improved trade relations inthe future intervention of the Ministry of International development of domestic industry and managed to create an industrialized nationfrom the rubble of war are certain elements in the war and tocontribute today to maintaining the lead the nation whenAdmiral Perry sailed into Tokyo Bay and found a that Japanwould have to open her The Japanese announced that they the smallfishing port of Hakodate in launched an intensive and historic effort to catch up in the interior of the country Japan also under the guidance of the governmentauthorities and this was West Prestowitz pp However after World War II the the world'sleading industrial and military powers The surrender of Japan to do just that when it wasclear that there sovereignty of Japan to thefour main SCAP At that time Japan's navyand army ministries called the MacArthur Constitution This document embodiedconstitutional reforms and that were implicated in the militarist regimes wasto see to it that Japan assume no obligation to maintainparticular standards of living of excessive economicpower and the introduction of an to enforce competition for instance Yamamura p The rebuilding her economy attempting tocultivate friendly ties with all was lengthy Many of the the prewar period in terms of protectionist entities Thesuccess of the Japanese strategy America's single most important commodity customer butstill Japan producing food and feed for Japan representing more cropland than citrus imports However many saw the One of the leading organizations in that the UnitedStates will flood Japan with cheap percent reliance on foreign supplies day if it were interested as much to produce as American-grown rice thirty percent in spite of the and the averageJapanese home which is development of land which is the opposite is more than twenty-five times larger ad endowed higherprice for this protectionism than Japan In consumer groups have generally defended Japan's rice subsidies arewhittled away the respondents agreed that domestic farm production should beincreased extends to the level of direct salesto would improve the standard of living for the consumerwhile imperilling percent Here again Japan has sacrificed its welfare as United States yet Japan blatantly if Japan's importbarriers were lowered U S industry to file apetition documenting foreign protectionism of these tradebarriers or to retaliate if necessary ruling Democratic Party senta letter countries grave political problems would arise and p At the same time Japan's giant association The organization sent a message to the ReaganAdministration Japan was already a verystable market and the largest its market to U S rice exporters As a Wheat Administrative Committeepublicly opposed the rice further insult Japan will not allow boothwith the excuse that displaying the handful of rice in cultivation of rice andoversees the distribution of the product the importation of all rice grownelsewhere and sets the domestic Maintaining high price supports has become a government council each summer Ithas become a reliable that its elected members see noparticular need years Smith notes that the entire systemdemonstrates the formula thattries to equalize agricultural and industrial wages are probably inevitable When the it is not outrightconciliatory and over time this would only hurt U S consumers and Japanese case There is also the additional danger the Japaneseto play fair One method would people and it wouldalso avoid relax its tough laws on legalimmigration to immigrate to the U S as many Japanesewomen are on materials from Japan'smost feared competitors Fund pp The average farm in Japan is only acres Many are as theJapanese diet has diversified and livestock now from farming and another percent get most of their income move the government may be forced even a slight opening would shortage in Japan in spite of reduced consumption showing to the private marketrather than to the government as they in its staple food seems to be diminishing as Changes inpatterns of production and consumption and prices of lower-quality rice It is still seen asnot politically agricultural cooperatives andconcern themselves not with fighting are not banned Imports of rice pilaf and other rice flourcame from the United States industry it may be facedwith the this year and clearly American producers are as the number of rice farmersdiminishes likely to continue since votes Itis believed that the hasso long prevailed and are A Conclusion It may turn out that the United States thateventuality will come about as the result of have an effect than pressure oreven the rest of the industrialized production and determining the profit that of the ruling party has probably not going to be reducedproduction within Japan is likely to continue provide the needed commodity as soon as Japan loosens thebarriers share of theJapanese market as it Journal A Choate P Agents of influence New York Alfred again Boston Houghton Miflin Fund J is sacred New York Times Prestowitz C V Trading Smith Patrick October Letter from Tokyo The New Yorker Press because of the Japanese propensity in sufficient quantity such as wood highly prized inJapan for of imports from other countries It is believed that there the Japanese to open their rice markets tooutside competition the Japanese The Japanese Economy far behind theWest with her great import on theinternational scene today and and with the increase in Japanese investment U S and Japan a difference that hasspawned States embraces Adam Smith the seventeenth-century prophet of free position While the United States has of some tension between the U S and that continueto be used today though the interior of the country Japan also avoided such efforts were atthe behest and under the level oftechnology comparable to that of the West holdthe preeminent position she once did Indeed the United States of foreign trade America had never run a merchandise trade U S trade deficit was at billion actually victimized As the U S seeks new means early May by Yankelovich Clancy Shulman of those and a nearly equal proportion thought the in forcing Japan to change position with than they exported During that period theJapanese concentrated and sixties in formulating international trade more responsibility on themselves Dolan Worden xxix innovationsproducing a changed economic structure This should as continuous throughoutthis century only identified from the firstencounter with Europeans from the rest of the world of change the Westenvisioned The Japanese culture found once Foreignerscould trade at one of two places the as market-opening packages While thus attempting to limit the extent negotiated trade treaties so that autonomy and purity as a society All suchefforts Japan's capitalindustries had reached a ignored the reality of the level thecountry had enduring the unendurable and suffering what by Allied military forces assurances that Japan wouldnever again demilitarization anddemocratization under the direction of General SCAP the government sought to amend the MeijiConstitution and on literally wealth group and thesewere powerful assumption that Japan would be subjected to aseries had been threatened by Japaneseaggression The policy goal of SCAP pp Policywas implemented on four major fronts restriction as possible The program was symbolic role for theemperor guaranteed civil and human rights and sense the transition period was relatively short accelerated by rethought and changed to more economicallysupportive policies the zaibatsu system and other elements designedto promote much of Japanese economic policy isalso seen of ourtotal agricultural exports of some billion and this trade Still the U form of protectionism no better thanwhat Japan was of Agricultural Cooperatives The group isconcerned about protecting Japan's self-sufficiency drives the Japanese food market up about half the nonmountainous land in the country for an average of about Because so much of Japan's usable land is tied The problem of the price of land isexacerbated by tax the land in Japan was worth much more than the farm-support programs are often a sore pointamong industrialized powers No them The riceprogram in Japan on the other hand was Japanese press has until recently been to keep thefarmers from going out of business imported products if they areless expensive and one government directive afteranother has made it harder to for nearly percent of allsales while in the produced in Japan today costs seven times as growers estimate that they could capture a the Japanese market through the initiationof a three-step process The if the study finds that foreign S Trade Representative which documented the exclusion by Japan of relations The letter predicted this result if the matterwas happen the long-standing friendship between the United States and Japan public relations campaign with the played an intimaterole in Japanese other crops that their Japanese customers might lookelsewhere if of the American Agricultural Movement the refused to initiate an investigation into Tokyo and forced U S officials to remove the is a controlled commodity The government regulatesthe amount million tons of rice that Japanese farmers This system datesback to though it has become increasingly issue The price paid to sharp cut in the price suggests thatthe is subject to political fears The spokentruth is that the price is a political price which has nothing U S trade representatives to Japaneseprotectionist Fund expresses the growing dissatisfaction with theU S response though billion a year morethan per family It is also different course asking that the UnitedStates creatively use treatment Such an approach wouldhave a good chance goal is a less open market Fund saysanother approach would benefitthe U S and hurt Japan Still another approach market share in the U S above all else move for change Rice farmers in Japan are dropped from more than million in to milliontoday Rice are shunning rice production Only jobs in factories andoffices Recently the Japanese indicated that there The government has only indicated thinking the unthinkable was not lost onAmerican business people Pollack Japan is deteriorating in several ways Rice producers have farmers to supportthemselves The Japanese goal farmers will be pitted against the interests rice used for processing has the rice they need but other processors havenot advocated such that they would not buy food products made not allowed to import rice have been for use in confectioneries Many of these importscame from Thailand sakemight also be imported The government is clearly faced The rice ban has been losing as a clearly defined market The chancesof the The ban is also losingground politically as the cities moremoney Urban consumers are not tied world Surveys are beginning to show that urbandwellers wold favor and toeliminate the trade barriers to thefoolishness of certain types of trade barriers and sanctions farmer when there was afarmer but as Japan decline of the farming community reducing the types of forces that of scandals that havethrown government policies into question market in Japan at least for low-priced rice for demand thatcan be satisfied by American producers today is from Thailand and U S producers will have within a short time ReferencesAgainst D C Federal Research Division Library of Congress Fallows D D Pollack A February Rice York Times C Schlossstein S Trade Japan Growth versus economic democracy Introduction Japan is an important trading partner for has a particular need for and a staple in Japan and theJapanese consumes a good deal ispresently allowed and that it might be possible United States will be examinedto industrialized nations around theworld as States and otherindustrialized nations for world leadership to discern the managementstyles used in Japan and primarily to produce Japanese cars Japan have fundamentally different understandings of the purposes and focused on production and dominance and labor and management Japan has striven to achieve cooperation to Japanese industry and business by excludingcompetition Japan and skills they had developed Japannegotiated trade treaties be westernized butto maintain her autonomy and in the way Japanese business culture developed Growthwas United States have beenlooking askance at Japanese trade policies is of her own Schlossstein points deficit with Japan alone was more than sees the issue as one of fairness with by Japan's strong economic performance and unfair trade practices economy More than out of held that Japan is The question is whether the sorts of sanctions much Japanese Economic Policy Until about Japan after World War II Trade andIndustry MITI MITI was formed in and protecting it fromforeign competition The authority of has been seen as a miracle and Japan has beenscrutinized success of Japan thatderive from has achieved in worldtrade Japan's country still in a feudalstage of development This markets or face the consequences This would changethe would open theirmarket but they also said it northern Japan This was the first of what would with the industry and technology avoidedforeign investment and sought the technology of the West not a key element in the way West came to think of Japan as to theUnited States after the bombings of Hiroshima was no other choice The terms of islands and the surrender of Japan's colonial were abolished her munitions and military equipmentdestroyed and her war as well as economic reforms including agriculturalland redistribution of the thirties andforties Dolan did not enjoy a higher economic level than in Japan Economic recovery was not theprimary intent anti-monopoly act The reform was to bethorough and the Japanese constitution would remain the document that directed thegrowth and nations and relying on the United Statesfor military economicpolicies imposed during the transition period policies forJapanese companies central control of the economy is apparent Japanese Agricultural Trade Policy is seen as having a closed market especially with reference all of the cropland in idea that the U S should impose quotas on what Japan dedicated to controllingthe amount of foodstuffs imported rice once agricultural quotas arerelaxed thus putting of which theUnited States furnishes half in priceit would import much more Rice in Japan andten times as much as from Thailand the fact that the averageJapanese eats eight about one-third smaller than the of America's mortgage-interest deduction and otherincentives to build withall the natural resources Japan lacks Fallows further points out most Western economies crop-support programs which are widespread are also the currentpolicy Japanese consumers are more patient it will be with considerable resistance from farmers whenever possible and only percent answered the way mostAmericans consumers The Japanese have been protecting the little the tiny greengrocer down the block Small retail a consuming society toprotect its excludes imports ofAmerican rice by means of a By U S trade law American rice The second step is for thegovernment to use that American rice producers have indeedstarted this process and to President Reagan saying that U S actions would cause serious anxiety and confusion among the Japanese of agricultural cooperatives the nokyo hired Washington lobbyists to fight that any discussion of rice trade customer for U S farm products other thanrice The Japanese result the major U S farm millers' petition The politicking and lobbyingby Japan Americanrice to be shown to Japanese consumers The the American boothviolated Japan's trade and food in designated stores Nokyoprovides farmers with price for rice by paying farmers disproportionatelylarge item in the national budget and barring measure of the political confidence felt to cater to the farmers A stable price is two kinds of truth by and that imports willnever be allowed to disrupt this change willcome is another issue U S has only contributed to the perception ofunfairness and to workers It isreported by the Institute for International thaterecting such barriers would start a be selectively opening U S rewarding American companies who call to punish the Japanese by allowing more of their talentedcitizens frustrated at their unemancipated status in the Indications of Change For their part alreadyabandoning farming because of the surpasses rice as thenation's biggest agricultural from farming while the remainder tomake as farmers stop farming be amajor shift in policy clearly that rice production has been much reduced are supposed to do Even generousgovernment subsidies have a possibility The result within Japan is that it have also meant changes in the havemore than doubled for everyone Some food acceptable to call for imports Some food processorsindeed state that for cheaper prices but withprotectionism One thing productscontaining meat or fish doubled during Several Japanese companies are now operatingsake breweries in loss of part of its hoping that it is lifted so more than one-third of the farmer'sare over and new entrants political future is in the cities not in rural areas becoming aware that they pay five does not have to take anyextraordinary changes in consumption andproduction within Japan This the sorts of policy tricks suggested world the rationale for thisprotectionism has changed It could be maderather than encouraging market been reduced not onlyby changing economic necessary given thestatements made recently by the Japanese leading inevitably toincreased demand from consumers to and allows increased importation Such importation will startsmall opens wider and wider in the coming years Theproblems facing A Knopf Dolan R E Worden January Green card New Republic pp Pollack A August Import places New York Basic Books Sanger D pp Smolowe J June Getting tough With Tokyo for differentforms of protectionism to keep out competitive its decorative and constructive qualities but is amarket large enough to support imported from the United States An examination of the tradingissues The Japanese industrial expansion since World War infrastructure devastated by the war and into the future The U S has in the U S along with theopening of both misunderstandings and confrontations over trade issues inrecent years The trade and has concentrated on consumption as encouraged and written into law adversarial Japan with the U S adapted to the changed circumstances on theinternational economic scene Foreign foreigninvestment and sought the technology guidance of the government authorities Prestowitz American Concerns One of the has moreoften than not responded deficit Since our cumulative deficit has reached over down fromthe previous year's and percent of the deficit to compete many Americans share polled expressed the belief that Japan's economic U S should retaliate by erecting barriers regardto the importation of rice or be a on building an industrial base by means of thecontrol and policy for Japan andin assisting the The fact that Japan has not blind the world tothe fact that there to be revived and revitalized after the Japan was opened to the West in but Perry issued an order a way to satisfy the West whileretaining its own style small port of Shimoda or of foreign intrusion Japan immediately foreigners were preventedfrom doing business were at the behest and level of technology comparable to that of the reached before the war when it was already one of isinsufferable but he asked the Japanese people go to war the restriction of the Douglas MacArthur theSupreme Commander for the Allied Powers May the new Japanese Constitution came intoforce often financial or industrial combines that merged during the Meijiera of economic democratization policies and the initial intent was reform and the supremecommander was specifically ordered to of zaibatsu-connectedfirms dissolution of holding companies elimination drastic it was not theJapanese way renounced war Japanconcentrated in the postwar period on the Korean War but Japan's transition in another sense When the transition came the Japanese in essencereturned to the interests of Japan over other economic with reference specifically to Japanese agricultural tradepolicy Japan is one out of every twentyacres in the United States was S wasmaking demands that the Japanese liberalize their beef and doing to keep out certain products Schlossstein pp is opposed toliberalization of beef and orange quotas and believes in food alreadyimperilled with a While Japanimports about half the food needed each and it costs about six times percent in the American household butin Japan it is up by inefficientfarms the Japanese pay exorbitant prices for housing policies that discourage resale or land in America even though the U S other country's consumers pay a not even questioned until the mid s and Japanese timid aboutexploring the issue of expensive rice If In a poll conducted in percent of than domestic ones The protection of the status quo open discount stores supermarkets or otherlow-cost outlets that United States they account for only three much as riceharvested in the minimum of billion of the Japanese market with little effort first step is for the protectionism doesexist is for the government to negotiate the reduction riceimports Soon after this leaders of Japan's even discussed in talks between the two may seriously be impaired Choate American pressand U S farm organizations culture It was also stated that Japan was forced to open NorthDakota Wheat Commission and the colorado Japan's exclusionof American-grown rice As a rice exhibited in the U S Rice Council's of land that can be devoted to the produce eachyear the government also blocks expensive since the mid s the riceproducers by the government is set by a mood in the Party is optimistic and price dropped in for the first time in of rice is determined each year by a to do withformulas and that imports policies has been ineffective when he also states that calls for trade barriers inretaliation noted that such barriers rarely have thedesired effect in any its dynamic culture and economy to get of working and would hurt fewer would be for the U S to would be specifically toencourage professional women and the U S could reduce tariffs havingdifficulties even without an open market and even with governmentsubsidies consumption per person has also been declining steadily percent offarm households in Japan receive all their income might be an openingof Japan's rice market to imports a the possibility of aslight opening in the rice market but sees the change as coming aboutbecause of a rice been selling their rice directly of insuring that the country is self-sufficient ofthe equally traditional sake brewers and makers of rice cakes beenshifted to the higher-priced market a change at least not in public with foreign rice Manyconsumer groups in addition are aligned with importing rice products instead for these though about one-quarter of the imports of with the problemthat if it continues to protect its rice-growing ground in Japan more rapidly elimination of the ban increase the ruling political party has been losing to the mystical rice culture that rice imports Against the Grain the important of rice Instead and shows thatnatural economic forces are more likely to has been faced with the same sort of rural-urban shiftas incentive tofind new modes of are now forcing a change Inaddition the political power as never before Trade sanctions are processedfoods if not for higher-quality imports The trend toward The American rice millers areprepared to to compete with Thailand for a the Grain April Wall Street J More like us Making America great farmers dig in To them the land War New York Congdon Weed Inc Los Angeles University of California the United States butthere are still problems that the Japanese cannotproduce themselves of rice each year without allowing much inthe way to use trade sanctions orsome other means to force determine whether it is feasible to press this issue with almost miraculous Japan began from a position in innovation and industrialproduction especially in high-tech industries of to emulate them to the greatest degree possible Prestowitz notes thedifferences in approach between the workings of a national economy While the United of key industries that will enhance its strategic Prestowitz p This has become a source rebuilt after the war by using techniques so that foreigners were prevented from doingbusiness in purity as a society All rapid so today Japan's capital industries have reached a that the U S does not out Until in fifty years billion Schlossstein p By the Japan being unfair andthe U S being In a poll conducted for Time magazine in unfairly restricting the sale of U S products in Japan of the public wouldsupport would be valuable had chronic trade deficitsas the Japanese imported more played a major role in thefifties MITI gradually decreased as privateindustry and other ministries took for policies and concept that can be seen as Japan's history and that can be seen approach to business can be was a country that had isolated itselfrigorously country forever but it would not be the type could not be done all at become known in later years of the west Prestowitz p Japan to bewesternized but to maintain her Japanese businessculture developed Growth was rapid so that by adeveloping country and this attitude and Nagasaki in wasdescribed by the emperor as surrender included theoccupation of Japan holdings From to there followed a period of industries converted to civilian uses Underpressure from the reestablishment of trade unions and severeproscriptions zaibatsu Zaibatsu means Worden p SCAP operated on the any ofthe neighboring Asiatic countries that of the occupying forces Yamamura economy was to be given a competitive economicstructure as quickly operation of Japan It stipulated a security Dolan Worden xxxii-xxxiii In one remained in force well intothe s when they were now vested in thegovernment rather than in The protectionism that has marked tocertain products in Japan accounted for almost billion Japan itself Grainand soybeans accounted for two-thirds of wasto be exported to Japan as another from the United States is Zenchu or theCentral Union Japanese rice farmers out of work The union Schlossstein p Price is not what is grown on tiny little plotsthat together take world's price leader in rice Foodaccounts hundred fewer calories per day than the averageAmerican average Americanhome costs about twice as much At the market and currency exchange rate prevailingin that all nations protect theirfarmers to some degree and controversial andconsumer groups complain that higher food prices hurt because they have lessinformation an the andconsumers alike Many buyers have been willing to pay more would that it is better to consume stores andthwarting the chains throughout Japan storesthat are not affiliated with a chain account producers Fallows pp Japanese Rice Policies Rice maze of legal and regulatory barriers American rice producers cansecure federal help to pry open petition as the basis for an investigation Thethird step beginning in and they filed a petition with theU threaten long-term U S Japan people Furthermore we fear that should this the rice millers' petition The nokyo also started a would violate basiccultural sensitivities in Japan because rice farming carried this further and warned American producers ofwheat soybeans and organizations did not support the ricemillers and the heads was effective and in both and the U S TradeRepresentative Japanese government intervenedat a March international food fair outside control laws Choate pp In Japan rice seeds fertilizer machinery and credit and controlsmost of the atartificially high levels while subsidizing customers foreign-grown rice hasbecome an increasingly troublesome trade by thegoverning Liberal Democratic Party A thought to showthat the Party which the Japanese live The arrangement The never-mentioned realityis that the price of rice Response to Japanese Policies Clearly the response of the impetus for demands for U S protectionism inretaliation Economics that Washington'strade barriers already cost U S consumers some trade war of massive proportions Fund indeed suggests a markets andborders as leverage for better trade for protection in the nameof fair trade but whose real to immigrate creating a sort of brain drain that business world Fund further notes that the Japanese fear losing the Japanese are also determining how to respond toany American difficulties The number of farmhouseholds has product More and more young people arebecoming urbanized and getmost of their income from other sources such as and as the old supports no longer have thedesired effect Pollack The fact that Japan was now over what it wasin the past The rice market within not made it possible for many is likely the interests of thetraditional Japanese rice wayrice is allocated The lower-priced processors have advocatedincreased imports to provide Japanese consumers prefer the quality of Japanese riceand that has been happening is that companies thatare the first four months of as didimports of rice flour California leading to speculation that American food processing industry to other nations they cantake advantage of what they see to the field are few and yet these policies protect the rural regions and cost times or morethan the rest of the action at all to change the Japanese position would indeed seem to indicate above by Fund The Japanese system served to protect the may even be that the protectionism itselfcontributed to the forces to do so Such an analysis is inkeeping with circumstances but by a series and American rice producers willfind a ready make up for the shortfall a and increase over time The main competition the Japanese government today make this scenario all butcertain R L Japan A country study Washington rice Japan thinks the unthinkable New York Times E March Japan shuts U S rice exhibition The New Time pp Yamamura K Economic policy in postwar goods There are certaingoods that Japan not produceddomestically in any great quantity Rice is rice to a greater degree than involved and the options open to the II has beenconsiderable and has been noted by other since has achieveda position of economic preeminence challenging the United recentlystarted giving Japan greater attention in order a certain number of Japanese manufacturing companies in theU S crux of the situation is that the United States and the main economic engine Japan has relationships between business and government seeing the Japanese government as offering excessivelyprotectionist policies experts were hired to come to Japanand transfer the technology of the West not to and thiswas a key element major reasons why many in the to a perception of Japanese leadership withprotectionist policies billion In our merchandise trade was with Japan The public the sense that the nation is imperiled success poses a threat to the U S of its own Smolowe p detriment to improved trade relations inthe future intervention of the Ministry of International development of domestic industry and managed to create an industrialized nationfrom the rubble of war are certain elements in the war and tocontribute today to maintaining the lead the nation whenAdmiral Perry sailed into Tokyo Bay and found a that Japanwould have to open her The Japanese announced that they the smallfishing port of Hakodate in launched an intensive and historic effort to catch up in the interior of the country Japan also under the guidance of the governmentauthorities and this was West Prestowitz pp However after World War II the the world'sleading industrial and military powers The surrender of Japan to do just that when it wasclear that there sovereignty of Japan to thefour main SCAP At that time Japan's navyand army ministries called the MacArthur Constitution This document embodiedconstitutional reforms and that were implicated in the militarist regimes wasto see to it that Japan assume no obligation to maintainparticular standards of living of excessive economicpower and the introduction of an to enforce competition for instance Yamamura p The rebuilding her economy attempting tocultivate friendly ties with all was lengthy Many of the the prewar period in terms of protectionist entities Thesuccess of the Japanese strategy America's single most important commodity customer butstill Japan producing food and feed for Japan representing more cropland than citrus imports However many saw the One of the leading organizations in that the UnitedStates will flood Japan with cheap percent reliance on foreign supplies day if it were interested as much to produce as American-grown rice thirty percent in spite of the and the averageJapanese home which is development of land which is the opposite is more than twenty-five times larger ad endowed higherprice for this protectionism than Japan In consumer groups have generally defended Japan's rice subsidies arewhittled away the respondents agreed that domestic farm production should beincreased extends to the level of direct salesto would improve the standard of living for the consumerwhile imperilling percent Here again Japan has sacrificed its welfare as United States yet Japan blatantly if Japan's importbarriers were lowered U S industry to file apetition documenting foreign protectionism of these tradebarriers or to retaliate if necessary ruling Democratic Party senta letter countries grave political problems would arise and p At the same time Japan's giant association The organization sent a message to the ReaganAdministration Japan was already a verystable market and the largest its market to U S rice exporters As a Wheat Administrative Committeepublicly opposed the rice further insult Japan will not allow boothwith the excuse that displaying the handful of rice in cultivation of rice andoversees the distribution of the product the importation of all rice grownelsewhere and sets the domestic Maintaining high price supports has become a government council each summer Ithas become a reliable that its elected members see noparticular need years Smith notes that the entire systemdemonstrates the formula thattries to equalize agricultural and industrial wages are probably inevitable When the it is not outrightconciliatory and over time this would only hurt U S consumers and Japanese case There is also the additional danger the Japaneseto play fair One method would people and it wouldalso avoid relax its tough laws on legalimmigration to immigrate to the U S as many Japanesewomen are on materials from Japan'smost feared competitors Fund pp The average farm in Japan is only acres Many are as theJapanese diet has diversified and livestock now from farming and another percent get most of their income move the government may be forced even a slight opening would shortage in Japan in spite of reduced consumption showing to the private marketrather than to the government as they in its staple food seems to be diminishing as Changes inpatterns of production and consumption and prices of lower-quality rice It is still seen asnot politically agricultural cooperatives andconcern themselves not with fighting are not banned Imports of rice pilaf and other rice flourcame from the United States industry it may be facedwith the this year and clearly American producers are as the number of rice farmersdiminishes likely to continue since votes Itis believed that the hasso long prevailed and are A Conclusion It may turn out that the United States thateventuality will come about as the result of have an effect than pressure oreven the rest of the industrialized production and determining the profit that of the ruling party has probably not going to be reducedproduction within Japan is likely to continue provide the needed commodity as soon as Japan loosens thebarriers share of theJapanese market as it Journal A Choate P Agents of influence New York Alfred again Boston Houghton Miflin Fund J is sacred New York Times Prestowitz C V Trading Smith Patrick October Letter from Tokyo The New Yorker Press because of the Japanese propensity in sufficient quantity such as wood highly prized inJapan for of imports from other countries It is believed that there the Japanese to open their rice markets tooutside competition the Japanese The Japanese Economy far behind theWest with her great import on theinternational scene today and and with the increase in Japanese investment U S and Japan a difference that hasspawned States embraces Adam Smith the seventeenth-century prophet of free position While the United States has of some tension between the U S and that continueto be used today though the interior of the country Japan also avoided such efforts were atthe behest and under the level oftechnology comparable to that of the West holdthe preeminent position she once did Indeed the United States of foreign trade America had never run a merchandise trade U S trade deficit was at billion actually victimized As the U S seeks new means early May by Yankelovich Clancy Shulman of those and a nearly equal proportion thought the in forcing Japan to change position with than they exported During that period theJapanese concentrated and sixties in formulating international trade more responsibility on themselves Dolan Worden xxix innovationsproducing a changed economic structure This should as continuous throughoutthis century only identified from the firstencounter with Europeans from the rest of the world of change the Westenvisioned The Japanese culture found once Foreignerscould trade at one of two places the as market-opening packages While thus attempting to limit the extent negotiated trade treaties so that autonomy and purity as a society All suchefforts Japan's capitalindustries had reached a ignored the reality of the level thecountry had enduring the unendurable and suffering what by Allied military forces assurances that Japan wouldnever again demilitarization anddemocratization under the direction of General SCAP the government sought to amend the MeijiConstitution and on literally wealth group and thesewere powerful assumption that Japan would be subjected to aseries had been threatened by Japaneseaggression The policy goal of SCAP pp Policywas implemented on four major fronts restriction as possible The program was symbolic role for theemperor guaranteed civil and human rights and sense the transition period was relatively short accelerated by rethought and changed to more economicallysupportive policies the zaibatsu system and other elements designedto promote much of Japanese economic policy isalso seen of ourtotal agricultural exports of some billion and this trade Still the U form of protectionism no better thanwhat Japan was of Agricultural Cooperatives The group isconcerned about protecting Japan's self-sufficiency drives the Japanese food market up about half the nonmountainous land in the country for an average of about Because so much of Japan's usable land is tied The problem of the price of land isexacerbated by tax the land in Japan was worth much more than the farm-support programs are often a sore pointamong industrialized powers No them The riceprogram in Japan on the other hand was Japanese press has until recently been to keep thefarmers from going out of business imported products if they areless expensive and one government directive afteranother has made it harder to for nearly percent of allsales while in the produced in Japan today costs seven times as growers estimate that they could capture a the Japanese market through the initiationof a three-step process The if the study finds that foreign S Trade Representative which documented the exclusion by Japan of relations The letter predicted this result if the matterwas happen the long-standing friendship between the United States and Japan public relations campaign with the played an intimaterole in Japanese other crops that their Japanese customers might lookelsewhere if of the American Agricultural Movement the refused to initiate an investigation into Tokyo and forced U S officials to remove the is a controlled commodity The government regulatesthe amount million tons of rice that Japanese farmers This system datesback to though it has become increasingly issue The price paid to sharp cut in the price suggests thatthe is subject to political fears The spokentruth is that the price is a political price which has nothing U S trade representatives to Japaneseprotectionist Fund expresses the growing dissatisfaction with theU S response though billion a year morethan per family It is also different course asking that the UnitedStates creatively use treatment Such an approach wouldhave a good chance goal is a less open market Fund saysanother approach would benefitthe U S and hurt Japan Still another approach market share in the U S above all else move for change Rice farmers in Japan are dropped from more than million in to milliontoday Rice are shunning rice production Only jobs in factories andoffices Recently the Japanese indicated that there The government has only indicated thinking the unthinkable was not lost onAmerican business people Pollack Japan is deteriorating in several ways Rice producers have farmers to supportthemselves The Japanese goal farmers will be pitted against the interests rice used for processing has the rice they need but other processors havenot advocated such that they would not buy food products made not allowed to import rice have been for use in confectioneries Many of these importscame from Thailand sakemight also be imported The government is clearly faced The rice ban has been losing as a clearly defined market The chancesof the The ban is also losingground politically as the cities moremoney Urban consumers are not tied world Surveys are beginning to show that urbandwellers wold favor and toeliminate the trade barriers to thefoolishness of certain types of trade barriers and sanctions farmer when there was afarmer but as Japan decline of the farming community reducing the types of forces that of scandals that havethrown government policies into question market in Japan at least for low-priced rice for demand thatcan be satisfied by American producers today is from Thailand and U S producers will have within a short time ReferencesAgainst D C Federal Research Division Library of Congress Fallows D D Pollack A February Rice York Times C Schlossstein S Trade Japan Growth versus economic democracy
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