In This Review
The Competition: Dealing With Japan

The Competition: Dealing With Japan

By Thomas Pepper, Merit E. Janow and Jimmy W. Wheeler

Praeger (for the Hudson Institute), 1985, 374 pp.

At a time when American popular media and some U.S. congressmen offer simplistic and even inflammatory explanations of U.S.-Japanese trade problems, this volume comes as a breath of fresh air. The authors warn against expectations of immediate improvement in trade patterns and encourage officials in both countries to focus on the macroeconomic issues; specifically, they urge Japan to stimulate domestic demand and the U.S. to take measures that would increase savings, investment and productivity. But they argue that trade disputes between the two allies could be ameliorated during the second half of the 1980s by the relatively buoyant economic environment that they think is likely to prevail in both countries. As Professor Henry Rosovsky of Harvard suggests in a foreword, their optimism about the future would have a better chance of being realized if Japanese and U.S. government and business leaders studied their analysis with care.