From: k3amichi@student.business.uwo.ca (Kentaro Nakamichi)
Subject: Re: DOES AMERICA SAY YES TO JAPAN? - Off track!!
Organization: University of Western Ontario
Date: Fri, 18 Dec 1992 03:23:51 GMT

irvine@uxh.cso.uiuc.edu (Brent Irvine) writes:

> Granted, some of the 'lost buisiness' was due to some complacency, but a lot
> of the 'damage' was done when (especially in the mid to late 80s) the Japanes
> were DUMPING products in the US while charging the loss directly to the home
> market in the form of artificially high prices [cartel].  No one, no matter
> how quick to market or efficient, can compete with *that*, especially when 
> tactics are used to deliberately destroy a buisiness.
> 
> >entire US manufacturing infrastructure fall apart, and now everybody is 
> >running around like chickens with their heads cut off, trying to figure out
> >what happened to them.
> 
> 
> BUT, our house being in disarray is a DIRECT RESULT OF WHAT THE 
> JAPANESE KEIRITSU DID TO US AND OUR GOVERNMENTS INACTION.  We
> took care of the government part, now lets take care of the
> Japanese part!

Wait a minute here.  It appears that Japan did form cartels to destroy 
the American electronics industry but that wasn't the case with the auto 
industry.  The Japanese auto-makers actually defied MITI orders to reduce 
the number of competitors within Japan.  Each went into the US for 
themselves and came out successful.  If there wa any cartel forming, it 
was forced onto the Japanese by the American government enforcing 
voluntary export restraints on the Japanese.  This forced the Japanese 
into selling fewer cars at higher margin to the Americans.  The 
end-result is that the American government subsidized the Japanese 
auto-makers.

A lot of the change in competitive position takes place naturally as a 
economy develops.  It was expected that the Japanese would take over 
textiles and steel immediately following World War II; they had lower 
wages.  It also comes as no surprise that Koreans are now taken steel and 
ship-building away from the Japanese, who are developing niche markets in 
things like anodization that require technolory and have high 
value-added.  

And when Japanese manufacturers locate in the US who benefits?  Granted 
the Japanese take the profits but it's American lanorers who get paid and 
it's often American suppliers that supply these factories.

Where there are unfiar trade barriers whether they be tariffs or 
non-tariff barriers Americans should use whatever means at their 
disposal, whether this means free trade within the hemisphere or 
tit-for-tat retaliation.

Although it's possible to see Japan as Japan, Inc., plotting to destroy 
the US, when one looks at the situation from a micro-level, US 
manufacturers could have done a lot to keep up with the Japanese.  And in 
certain industries the Anericans are doing well.  Procter & Gamble is now
profitable in Japan.  McDonalds and Kentucky Fried Chicken, along with 
places like Shakey's have a lot of recognition in Japan.  Some of the 
computer companies do quite well.  The financial industry in general 
appears to have a significant advantage over the Japanese.  Morgan 
Stanley was in charge of doing NTT's initial public offerings.  Although 
the playing field does appear to be tilted, comapnies have beaten the 
odds, and efforts can be made to even up the playing field.

k3amichi@student.business.uwo.ca (Kentaro Nakamichi)
Western Business School  --  London, Ontario
Newsgroups: soc.culture.japan,soc.culture.asian.america,alt.sex,soc.culture.usa,soc.culture.african.american,sci.electronics,misc.consumers,misc.education,misc.entrepreneurs