orse than it appears to be. This is because Japanese goods manufactured by Japanese plants in other Asian countries and sold in the US do not appear in the US trade deficit figures with Japan (Schlesinger A11).Another false claim, most often made by Japanese trade representatives, states that it is naturally expected and ok that Japan has a trade surplus with America (Schlesinger A11). This is because if every Japanese bought $100 of goods from America, and every American bought $100 worth of goods from Japan, an imbalance would occur in Japan's favor as there are twice as many Americans as Japanese in the world. In the real world though, this is not ok, and cannot happen for very long without serious consequences. To see more clearly this picture, imagine a world with 2 countries, one with 100 citizens, and another with 1 citizen, you. Each person has $200 to his or her name. Every year you buy $100 of goods from the other country, and each of their citizens buys $100 of goods from your country. If you work out this example, you will see that in a little over two years, you will have accumulated all of the money in the world and the other country will be penniless. This is the current state of affairs between Japan and its trading partners. Although things are actually occurring more slowly, this is the trend.An extensive chain of command of small distributors and shops exists in Japan, which deters the distribution of foreign goods. When Americans say the Japanese distribution system is "difficult" or "complex", this is what they are referring to. In reality, the Japanese distribution system is fixed. This is why it is so difficult and complicated for the foreigner to succeed in the Japanese market. Since Japan is a communal society, it follows a strict code of loyalty. Shopkeepers have loyalty to their suppliers and customers. They also have loyalty to the nation, Japan. Undoing this arrangement that brought the country and its ...
