Some Things Never Change
The article through Radio Economics which was published through The Japan Times tells about how Japan doesn't have an open market for foreign goods. Most citizens of Japan buy their good from their own country. Why is this? According to this article, it's due in part to America and Europe are too expensive. The article also states that Japan grows certain items, such as mangos and bananas in abundance. Americans purchase foreign automobiles everyday. The foreign markets make both right-hand and left-hand driving vehicles. Yet, Japan says that they can't get vehicles, at decent prices, from America or Europe. Also, American vehicles are too big and use too much gasoline. Therefore, they purchase vehicles from their own market. In my opinion, Japan is sucking the money up left and right from foreign countries -- yet, they don't give back by bringing the foreign goods into their market for Japanese citizens to purchase. This is extremely unfair. How do you feel about this strategy of Japan?
2 comments:
I am not sure about the Japanese market but the same situation described in the article happens in China as well. Overseas vehicles are so expensive that not a lot of people can afford it. The Chinese government tries to set up a high tariff and protect the domestic industry. They do no think the domestic automobile industry is competitive enough to fight in the international market. In order to protect the new-born industry, Chinese government set up the tariff. Nowadays, regulations have been removed because China is required to decrease the tariff due to the WTO rules. I believe the automobile industry is getting more competitive and consumers in China will benefit from the international competition and start to buy cheap vehicles.
Economically, I believe it is a mistake for Japan to limit their free trade. Argentina had inward-oriented policies through most of the 20th century which proved to cause a shrinking in their economic power. Outward-oriented policies would better the economic growth of Japan. Trade is a technology that was developed to allow society's to specialize in places where they had comparative advantage in order to grow economically.
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