[PDF] Us Strategic Trade Policy And Japanese Automobiles eBook

Author :
Publisher :
Page : pages
File Size : 29,98 MB
Release :
Category :
ISBN :

GET BOOK

Can intervention by the Bank of Japan on the yen/dollar rates be used as a strategic policy to promote Japanese exports to the U.S. markets? We develop theoretical models based on strategic trade policy literature to explain possible impacts on U.S. automobiles. During the last decade, the changes of yen/dollar rates have coincided with dramatic market-share gains by Japanese automakers in the U.S. market. In the meantime, intervention by the Bank of Japan on the yen/dollar market has reached a record high. Our models assume interventions have two channels to influence U.S./Japan trade. First, we hypothesize that official currency manipulation by the Bank of Japan was implemented as a means to subsidize Japanese. The second channel resulted from the relationship between the expectation of an unavoidable foreign exchange rate appreciation and automobile purchase behavior of U.S. consumers. We assembles the famous "peso problem" in international finance. By preventing the prompt appreciation of JPY using intervention strategy, we argue that intervention by the Bank of Japan create a notion of unavoidable appreciation of JPY rate. This prompts U.S. consumers to purchase cars earlier. We explore the effects of intervention of Bank of Japan on the changes of sale volume and market shares of U.S. and Japan automakers and the results show that the sale volume and market share of American automakers decrease while these of Japanese automakers increase. Empirical results also indicate that U.S. consumers tend to purchase more Japanese automobiles when the Yen's appreciation is withheld temporary level they have expected. After comparisons, we conclude that interventions by the Bank of Japan affect American automakers through cost disadvantage and Japanese automakers through another channel. Results also imply that the effects of intervention on Japan/U.S. trade lie more through the channel of cost subsidy.

Author : Steven Berry
Publisher :
Page : 72 pages
File Size : 38,62 MB
Release : 1995
Category : Automobile industry and trade
ISBN :

GET BOOK

In May, 1981, a voluntary export restraint (VER) was placed on exports of automobiles from Japan to the United States. As trade policies go, this one was important. At about the same time, though to much less fanfare, international trade theorists were obtaining (then) startling results from models of international trade in imperfectly competitive markets. These models suggested that in imperfectly competitive markets, an activist trade policy might enhance national welfare. In this paper, we provide some empirical evidence on whether these new theoretical possibilities might actually apply to the policy of VERs.

Author : Kala Krishna
Publisher :
Page : 68 pages
File Size : 47,24 MB
Release : 1996
Category : Automobile supplies industry
ISBN :

GET BOOK

Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share may be implemented with fairly weak informa- tional and administrative requirements. Moreover, such policies can be both pro-competitive and advatageous to US firms.

Author : Phyllis Genther
Publisher : University of Michigan Press
Page : 253 pages
File Size : 19,88 MB
Release : 2020-08-06
Category : Social Science
ISBN : 0472902075

GET BOOK

Despite the economic and political importance of the U.S.-Japan relationship and the extensive attention paid to automotive trade, few American scholars or policy makers are familiar with the history of Japanese government-business relations, either generally or for specific industries such as passenger cars. This book hopefully helps in a small way to fill that gap in our knowledge and, thus, to help strengthen the foundation from which we make public policy decisions about bilateral trade. [ix]