Keywords: bilateral trade agreement, dynamic random access memory chip, industrial policy, managed trade, microprocessor, personal computer
The industrial policies of the USA and Japan
This paper contrasts the effectiveness of the post-war industrial policies of Japan and the USA, with the success of the former predicated on its government's timely intervention to aid a prostrate economy. Competition from Japanese imports would threaten firms in key American automobile and semiconductor sectors and trigger protectionist measures and provoke government efforts aimed at managing international trade. These would have minimal impact, with the commercial recovery of the US industries attributable to product innovations such as the sport utility vehicle and microprocessors for the burgeoning personal computer field.