Japan-US International Trade Relationship

Do you need this or any other assignment done for you from scratch?

We assure you a quality paper that is 100% free from plagiarism and AI.

You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Click Here To Order Now!

Japan-US International Trade Relationship

Table of Contents

Introduction
The International Trade Between the United States and Japan
Conclusion
Work Cited

Introduction

In the international trade, countries are obliged to consider the state of industries of their trade partners. Nations whose economies size up to each other have to carefully assess their comparative advantage in order to ensure that they benefit from international deals. Through the example of Japan-US trade relationship, it is possible to understand how a comparative advantage shapes the countries markets. This paper will analyze the importance of a proper assessment of a nations and its partners economy.

The International Trade Between the United States and Japan

International trade presents a complex environment that may be challenging to navigate, especially if there are significant restructures underway. In an attempt to encourage citizens to purchase locally manufactured automobile parts, President Trump was set on decreasing the countrys imports through tariffs and quotas (Hufbauer and Jung). However, his assessment lacked a proper evaluation of comparative advantage. The data shows that the U.S. import of automobile parts to Japan is 22.6 times lower than Japans import to its partner (Hufbauer and Jung). Moreover, the United States did not have an overall comparative advantage, as Japans imports were significantly higher than its exports of U.S. goods (Hufbauer and Jung). Thus, Trumps threats of increased tariffs were insubstantial and baseless.

Conclusion

In conclusion, Trumps decision to limit the import of Japans auto parts could have led to the destabilization of the auto market due to the U.S. being unable to match its partners manufacturing capacity. This analysis shows that the U.S. was not in the position to impose severe restrictions on Japanese firms, as their contribution to the local economy overshadowed the countrys export to its partner. There is a multitude of issues that would come back at both U.S. consumers and manufacturers if such quotas were imposed.

Work Cited

Hufbauer, Gary C., and Euijin Jung. Will Auto Trade Be a Casualty of US-Japan Trade Talks? The Peterson Institute for International Economics, Web.

Click Here To Order Now!