The Economic Dimensions of US-Japan Trade and Trade Frictions

Abstract

Successful international trade policies such as those of Japan have once again proven that trade can be an ‘engine of growth’, but can also create trade frictions with major trading partners. What is trade? Why is trade one of the most sensitive issues of this decade and beyond? Why has trade between the US and Japan created so much friction? What are the causes of these frictions? What are the specific areas of trade friction? It is the objective of this chapter to attempt to answer these and other questions underlying the economic dimensions of US-Japan trade friction. It is important to point out that there are many political, cultural and social factors that may contribute to trade frictions between the two countries. These factors, however, are addressed in other chapters in this volume.