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...drop opened frightening prospects. As Blumenthal stated on TV last week, an endless fall in the dollar's value would destroy any chance that Stage II could succeed; the rise in import prices would overwhelm the most valiant struggles that companies and unions
...tariff walls and quotas, with the aim of bringing U.S.-Japanese trade back into balance by 1980. But there have been few signs that the promises are being kept, and trade hassles with the Japanese are still regularly in the headlines (last week's concerned Japanese import quotas on American beef and oranges...
...current Foreign Affairs, two officers of the Boston Consulting Group, a private management study firm, place the blame for the trade imbalance on a lack of aggressiveness among U.S. exporters. They insist that over the past ten years America has steadily lost its share of the Japanese import markets for most manufactured goods and that, whatever the barriers and for whatever reasons, the U.S. has been supplying a smaller and smaller part of what Japan does in fact import...
...been largely dismantled and that "there are really few restrictions on manufactured goods." But, he adds, they have been replaced by something different: "a mentality on the part of the average Japanese businessman that says 'I've been told for a hundred years I shouldn't import. I can make it here.' It's a sort of conditioned reflex." Says Norman Glick, a member of the U.S. Commerce Department's trade facilitation committee: "The Japanese have protection in depth. As soon as you peel away one layer, you find another...
Many Japanese businessmen are enthusiastic about what they see as a potentially profitable opportunity to link Japan's export-oriented economy to a China in desperate need to acquire modern technology and expertise. Still, the Japanese business community wonders how the Chinese will pay for their gigantic import program. Since the early 1970s, China has been making most of its major purchases from Japan on credit. Because Peking has inadequate foreign-currency reserves, the Japanese must either grant loans or buy Chinese oil. Both solutions present pitfalls for Japan. Peking has hinted it wants the type of cheap loans, repayable...