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Japanese Auto Imports

American politicians must act to impose restrictions on Japanese auto imports. Quotas must be levied against Japanese auto imports for the following reasons:

A glut of autos on the market because of increased foreign competition.

Continued loss of U.S. market share for U.S. auto-makers.

Before exploring these issues that support the move for restrictions on Japanese auto imports, we need to define some of the terms we will be using to understand the necessity for imposing them:

Trade Deficit – A state where the amount of imported goods a country consumes greatly outweighs the amount of goods exported by that country to the “importing” nation.

Market Share – The percentage of the potential consumer market obtained by an organization.

Imports – Goods manufactured in one country and bought by another.

Exports – Goods manufactured in one country and sold in another.

Protectionism – Policies and programs implemented by the government that place restrictions, quotas, sanctions, and other forms of controls on imports.

The Japanese have tried throughout the 1980s and 1990s to win U.S. market share for their auto imports. Former President Ronald Reagan removed quotas from Japanese auto-makers in the mid-1980s. Since that time the Japanese have steadily increased their imports of autos to the U.S., while U.S. auto-makers have watched their market-share steadily erode “Excess production capacity in the U.S. could reach 1 or 2 million cars” (Russell 1). As protectionism policies continued to dissolve, Japanese auto-makers continued to boost its American manufacturing capability by using “transplant” companies which depend largely on imported Japanese made parts.

The Japanese continue to this day to increase the number of imports to the U.S. market. The Big Three auto-makers (Ford, General Motors, and Daimler-Chrysler) are particularly experiencing a glut in the large, expensive, spor...

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Japanese Auto Imports. (1969, December 31). In LotsofEssays.com. Retrieved 12:36, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1685740.html