U.S. Government & Motorola Corporation Dispute

The purpose of this research is to examine the events and circumstances surrounding a dispute between the U.S. government and the multinational American public corporation Motorola over the issue of the opening of the Japanese market to American cellular telephone technology. The plan of the research will be to set forth the context in which the dispute arose in 1994, including its major political and economic factors, and then to discuss how the set of issues involved in the dispute were shaped toward resolution.

With global business activity virtually mandated in the modern world on account of the revolution in telecommunications and transportation, issues of foreign trade and international law and the implied clash of cultures accompanying them, need to be understood: "Emphasis is placed on the business enterprise as it conducts its commercial activity in environments that are different in their economic, legal, political, social, and cultural aspects form the firms [sic] corresponding domestic environment."

Contracts honored by all parties to them are a primary feature of global enterprise, but encounters between often vastly different domestic commercial environments entail "domestic laws of both the home and host nations as well as the custom and usage of international business practice." Inevitably, a gap opens between the definitions and the practical application of variable (sometimes competing) historical and legal traditions. Unpredictability is also associated w

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hing not widely publicized at the time was the fact that Motorola had had a wholly owned subsidiary in Japan since 1962 and was the largest exporter of pagers to the same Japanese conglomerate with which it was fighting on the cellular-phone issue. Thus, from one point of view, Motorola's problems with Japan were not access per se but the scale of access to a specific market segment. But, to appreciate the importance of the fact that Motorola became the focus of a near trade war in 1994, it may be useful to examine the character of economic and political culture and development in Japan during the preceding 50 years, and set it beside the economic and political culture of the United States in response to Japan's transformation. The focus of Japan's postwar development was organized around direct cooperation between government and industry. Japan's Ministry of International Trade and Industry (MITI) is an unofficial advisory board, not a government agency. But it has the force of authority for cross-industrial development, which comes down to the fact that it functions as a cartel, very much in the manner of Japanese cartels of earlier political generations, such as zaibatsu. And, like earlier Japanese political structures, MITI

Category: Government - U