Abstract
Recent legislation in the U.S. concerning export trading companies has drawn attention to the Japanese general trading companies. While the intent of the ETC Act was not to replicate the sogo shosha model in the U.S., there are some parallels which we can identify. In this paper we examine the evolving forms of the sogo shosha and ETCs, and show how they compete directly in some areas of international trade. Although early performance results for U.S. ETCs are not encouraging, longer term results are expected to improve. To support this expectation, we identify current problems and offer recommendations for improvement. These recommendations are framed in the context of the U.S. business environment, and implications for public policy are assessed.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Abegglen, James C. and George Stalk 1983. “Japanese Trading Companies: A Dying Industry?”The Wall Street Journal (10 July): 17.
Bonker, Hon. Donald. 1982.The Export Trading Company Act of 1982 Hearings and Markup before the Committee on Foreign Affairs and its Subcommittee on International Trade and Economic Policy, 97th Congress, Ist and 2nd sess., (prepared statement).
Browne, Harold. 1982. “Export Trading Companies Metamorphosis for the Traditional EMC.” Paper presented at the Baruch College Albert Lippert Business Symposium, New York City. (9 Dec.): 27–28.
Business Week. 1983. “How The Marc Rich Case Shakes The Secret World of Global Traders.” (5 Sept.): 80–81.
Cappiello, Thomas. 1982. “The Changing Role of Japan’s General Traders.”Journal of Japanese Trade and Industry 4:18–30.
Chew, Ralph H. 1981. “Export Trading Companies: Current Legislation, Regulation and Commercial Bank Involvement.”Columbia Journal of World Business 16 (Winter): 4, 42–47.
Czinkota, Michael R. 1984. “The Business Response to the Export Trading Company Act of 1982.”Columbia Journal of World Business 19 (Fall): 105–111.
Ericson, Helen. 1983. “Three Trading Firms Get First Certificates.”The Journal of Commerece (28 Oct.): 12a.
Far Eastern Economic Review. 1982. “Total Business Development, Not Just Passive Investment” (3 Dec.): 74–78.
Forbes. 1984. “The 200 Largest Foreign Companies.” (2 July): 134–136.
Ikeda, Yoshyuki. 1984. “Third Country Trade: Good Business For Sogo Shosha.”Journal of Japanese Trade and Industry 2: 47–50.
Kerns, Hikaru. 1982. “Japan’s Slow-go-Shosha.”Far Eastern Economic Review (12 Nov.): 88–90.
McAbee, Michael. 1980. “Put Japan to Work on U.S. Exports?”Industry Week (10 Nov.): 72–78.
Mimura, Yohei. 1982. “Sogo Shosha at the Crossroads.”Speaking of Japan (August): 3, 20, 28–32.
Price Waterhouse and the Council For Export Trading Companies. 1984.The Export Trading Company Guidebook. Prepared for the U.S. Department of Commerce, International Trade Administration (February).
Scouton, William. 1982. “Export Trading Companies.”Business America (18 Oct.): 3.
Weiner, Steven. 1984a. “Sears’ Unprofitable World Trade Unit Lays Off 150 as Start of Consolidation.”The Wall Street Journal (3 Aug.): 27.
Weiner, Steven. 1984b. “Sears Is Showing Sings of Retreating from Chief’s Yen for Taking Risks.”The Wall Street Journal (8 Aug.): 19.
Weiner, Steven and Johnson, Robert. 1984. “Export Trading Firms in the U.S. Are Failing to Fulfill Promise.”The Wall Street Journal (May 24): 1 ff.
Weigner, Kathleen K. 1983. “Outward Bound.”Forbes (4 July): 96–98.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Amine, L.S., Cavusgil, S.T. & Weinstein, R.I. Japanese sogo shosha and the U.S. export trading companies. JAMS 14, 21–32 (1986). https://doi.org/10.1007/BF02723261
Issue Date:
DOI: https://doi.org/10.1007/BF02723261