By W. Nester
This article analyzes US-Japan family amidst the altering nature of energy and diplomacy. Chapters discover the relative successes and shortcomings of yank liberalism and jap neomercantilism, the bilateral exchange duels over finance, excessive know-how and agriculture, and the prices and advantages of overseas funding and armed forces spending. The publication concludes with feedback for a systemic and radical overhaul of yankee regulations towards itself, the worldwide economic system, and Japan. William R. Nester has additionally written "Japan's transforming into strength Over East Asia and the realm Economy", "The Foundations of jap Power", "Japanese business Targeting", and "Japan and the 3rd World".
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Paradoxically, liberal theory does allow states to protect "infant industries" until they have been nurtured into industries capable of competing in global markets. But "infant industry" protection raises many questions which liberal economists cannot answer. Should protection from the market's magic be extended to every new industry proposed by entreprenuers? If not, what new industries should a state protect? And how does picking winners and losers jive with the notion that governments should not do so?
T h e strategy assumes that comparative advantage can be created and does not have to be fatalistically inherited as liberal theory maintains. Trade is a zerosum game in which one state's gains are another's loss - states accumulate wealth by r u n n i n g continual trade surpluses. I t also assumes t h a t industries vary according to what they contribute to overall economic development. Steel or semiconductors are considered more important to the economy than surfboards or skateboards, even if their market value is identical, because those "strategic industries" represent value-added products which form the foundations for scores of other industries and provide high paying jobs for white and blue collar workers.
Peasants still revolt for bread and land, b u t their struggles are now shaped by democratic or Marxist ideals, and linked by satellite to similar rebellions around the world. Liberal democratic systems are so attuned to the public pulse that the result is often government by mass opinion survey. T h e late 20th century emergence of the "global village", stimulated by such institutions as the U N and CNN, and linked by television antennas sprouting from even the world's poorest and most remote dwellings, has forced every government to at least listen to if not heed the voice of global elite and mass opinion.