U.S.-JAPANESE TRADE POLICY FORMULATION AND FRICTIONS IN TRADE RELATIONS: 1978-79

The subject of this dissertation is U.S.-Japanese economic relations, or more specifically, the formulation of trade policy in these countries and friction in their trade relations from January 1978 to July 1979. This period was chosen because the frictions during this time are considered to be the most frequent and intense since the two countries embarked upon trade relations in 1854.;The study confirmed the relationships hypothesized. Macroeconomic policy--and resultant frictions over agricultural imports and government procurement--were generated by the differing international and domestic economic interests of the two countries. The conflicting interests developed into frictions because of the differing trade-policy formulation processes and the resulting communication gaps and misperceptions which intensified the frictions. Both Americans and Japanese viewed the other side's unique characteristics not as differences which needed to be understood, but as qualities which had to be resisted.;The confirmation of the hypothesized relationship should be of concern to the policy-formulators and the general public of both countries, because the basic nature of the relationship does not seem to have changed since Commodore Perry and Consul Harris first went to Japan in the nineteenth century. Unless the negative effects of the relationship are mitigated, they will continue as harbingers of future trade frictions between the two countries.;What must be understood by both sides is that while the U.S. and Japan are allies and friends, they will continue to encounter differing international and domestic economic interests. Therefore, they must seek to understand these differing interests and to better appreciate and accept each other's particular cultural differences.;Both the theoretical literature reviewed and the author's practical experience associate trade frictions with differing international and domestic interests and differing processes by which trade policy is formulated. In each country, the policy-formulation process is influenced by particular organizational and administrative characteristics, as well as by differing socioeconomic and cultural backgrounds of policy-formulators. The considerable dissimilarities between Japan and the United States lead to communication gaps and misperceptions in the policy-formulation and negotiation process--and ultimately to trade frictions.