Quote:
Originally Posted by MissMisa
I don't know much about the US, honestly. What are the negative effects that Japan are facing from trading with the US? I guess I'm asking, why not?
The US is massive economically and can typically bring a lot of wealth to a country. Similarly, it can also mean that negative effects on the economy are passed on to other countries.
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Although Japan sells produces all around the world, Japan relies too heavily on the huge U.S. market for her economy. The U.S. knows this and threatens to restrict or place tariffs on Japanese imports if Japan doesn't side with the U.S.
For more than 50 ,years now, even though the U.S. was changed its position on international issues each time it switches parties, Japan has been in lock step with American. this is obviously not a coincidence. Japan has to side with the U.S. in order to receive favorable trade agreements. I like to point out, this is not the U.S. fault. Japan was a fully welling partner in this relationship. But, this is the current state of affairs.
Having military bases in japan was been the U.S. plan since immediately after WW2. Military bases in Japan checks Russian and Chinese activity. The importance of Japanese bases proved its worth during the Korean war. The whole war was conducted out of Japan. The Russians, Chinese and North Koreans look at the military bases as the first line of intrusion of the U.S. and look at Japan as a puppet state of the U.S. If Japan did not have these bases, Russia and China would not look at Japan as a threat. North Korea is a threat, but if Japan has discussions with China and lets her know Japan wants to remove U.S. presents and needs Chinese protection from NK until Japan's own military is fully built up, I think China would definitely go along. furthermore, good relations with China and Russia means more exporting to those countries as well as low cost labor that can bring down the prices of Japanese goods around the world to compete with say U.S. and Korean goods.
Lately, Japan has a serious problem buying way too much brand named fashion goods like bags perfumes shoes etc..A purse alone cost several hundred dollars. Most of the expendable money made by single women between 20~40 goes to buying this exports. I haven't even included what the boyfriends buy for their girls. I've read that if Japan didn't buy all this brand named fashion stuff and instead bought Japanese goods, the effect of recirculating the money would very well bring Japan out of its 20 year recession. It would be nice if people voluntarily chose a little protectionism on their own, but since that will never happen, I think import restrictions and high tariffs are needed. You can't stop the recession by selling more alone - you have to also stop the bleeding so the money can recirculate.
Anyway, that's what I believe is the current situation between the U.S. and Japan i would be interested to here other opinions or takes on whats really going on and what should be done about it.