Quote:
Originally Posted by chiuchimu
So during the late 70 and early 80, when Japanese imports were out selling American cars and almost bankrupting these American car companies, that was good and beneficial to both parties?
All that 'buy American' and 'Japan bashing' happened because stupid Americans just didn't understand that buying Japanese cars was beneficial to their economy? Face it, too much Japanese cars hurt the U.S. car industry and economy while making japan richer. This is exactly what's happening with expensive fashion imported into Japan from Europe.
Imports can benefit the consumer and some side companies, but it hurts domestic companies and takes the money out of circulation. Total trade between two or more countries can be beneficial if they carefully make agreements. yes. But, on any one item, imports usually hurt the domestic economy unless there are special circumstances like, the lack of something in one country while the abundance of said thing in another. Handbags are made in Japan - they don't qualify as special situation.
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This happens the world over and 1st world countries like Japan and the US are finding it near impossible to compete with international manufacturers (depending on the industry) because much of the world's manufacturing now occurs in developing countries where wages are compartively very low. Basic manufacturing in all developed nations has been decimated by this. Many companies have had to close shop in their own country and set up factories in developing nations to stay competitive. The US car manufacturing industry has only survived beacuse of massive government financial bailouts from time to time.
Japan actually does more than many countries in the form of tarriffs and subsidies to attempt to protect local industries but this has consequences for Japanese exporters as well. In the world of international trade there is tit for tat. You attempt to restrict imports through tarriffs from a certain country then that country will restrict your ability to export into theirs. You really can't set it up so that only Japan benefits.