Anticompetitive Practices in Japan: Their Impact on the by Masaaki Kotabe

By Masaaki Kotabe

The U.S.-Japan bilateral alternate courting may be the main consequential and the main tumultuous on the earth. executive and company leaders dedicate great effort and time to resolving the move of disputes that come up among the 2 allies and buying and selling companions. a number of the matters are rooted within the notion that Japan's amazing fiscal good fortune might be due in a point to anticompetitive practices by which Japan's household markets are safe, and that an unfair virtue is granted to eastern businesses as they extend overseas. whatever the validity of those reviews, their lifestyles exerts a destructive effect upon this significant bilateral relationship.

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And, if so, (2) Does the occurrence of anticompetitive behavior in Japan have a negative impact on the performance of American companies marketing manufactured goods in Japan? This research goes beyond what has been done previously by investigating specific anticompetitive acts rather than inquiring about barriers in general. S. S. and Japanese government policy makers, trade negotiators, and law enforcement officials. The balance of Chapter 2 is devoted to the topic of anticompetitive behavior in Japan and its role, if any, in the repulsion of foreign manufactured goods.

Allied was the exclusive holder of both the Japanese product and process patents, and operated the only commercial amorphous metal production facility in the world. Allied had invested 12 years and millions of dollars attempting to open a market in Japan for a product with proven superior economic and societal advantages, all to no avail, due to what appeared to be deliberate roadblocks and delay tactics. Allied had expected sales of $100 million annually, but after 12 years had yet to achieve more than a tiny fraction of that amount.

In the midst of a recession, they were desperately trying to pare their enormous deficits. MITI approved the cartel as a stop-gap measure on the grounds that many firms risked bankruptcy otherwise. Seventeen petrochemical companies set up four joint sales firms. Business bounced back soon after the cartel was formed and demand picked up. Several years later the industry was posting record profits, but the cartel was still setting prices. The “stop-gap” measure has become a permanent feature of the industry, making petrochemical companies a lot richer and angering clients who are sharply critical of the institutionalization of the cartel.

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