From: louis@aupair.cs.athabascau.ca (Louis Schmittroth)
Newsgroups: sci.electronics
Subject: Re: DOES AMERICA SAY YES TO JAPAN? - Off track!!
Date: 18 Dec 92 16:04:13 GMT

k3amichi@student.business.uwo.ca (Kentaro Nakamichi) writes:

Although I agree with a lot that you say,  I want to add a few
comments.  I have read two thoughtful and very well documented books
recently which I *highly* recommend.  Niether is "Japan bashing."

1. Prestowitz, "Trading Places -- How We are Giving out Future to Japan and
How to Reclaim it."  

2. Thurow, "Head to Head."

>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.

Japanese manufacturers import 4 times as much per worker as domestic
American.  [Thurow page 201] Typically these imports are the more
sophisticated parts and subassemblies which represent the engineering
and high-wage jobs.  So, no, it is a net less of jobs compared to
ground up American plants.

When the Toyota plant was built in Georgetown, KY, the construction
company was Ohbayashi Gumi Corp [not exactly a hometown American firm],
Suppliers were from the Toyota keiretsu in Japan.  Nearby Topy
Industries built a plant to make wheels, Hitachi built nearby for
electronics, and the Trinity [yes, Japanese] company set up for
painting.  The financing was done by the Mitsui Bank.  [Prestowitz page
493].

He goes on to describe how the keiretsu system is being transplanted to
the colony-in-the-making: the United State of America.

>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.

Thurow predicts that the future will bring more "managed trade,"
something like the Auto Pact which governs autos and auto parts between
Canada and the US, and has worked to the great benefit for both
countries.  But both countries are part of a common cultural past,
Japan isn't, not to say that Japan's culture is inferior, "unfair"
or anything of that sort, just different.

>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.  

Well, I would like to see what market share they have.  After reading
the horror story of American soda ash producers trying to get into the
Japanese market, I will always wonder.

>McDonalds and Kentucky Fried Chicken, along with 

These are strictly Japanese owned franchises in Japan.  Very minial
income flow to the US.  How could it be otherwise, given the mindset of
the Japanese?

>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.

Well, your significant advantage for financial institutions means that
almost all of the 20 largest  banks in the world are Japanese, and the
largest security firm, Nomura, is Japanes.

>k3amichi@student.business.uwo.ca (Kentaro Nakamichi)
>Western Business School  --  London, Ontario
--
Louis Schmittroth louis@cs.athabascau.ca
NW 1/4 18 67 21 W4 Alberta.