Abstract

U. S. -Japan trade frictions, which began as minor irritants in an otherwise smooth relationship in the 1960s, have escalated to the point where they seriously threaten what has been termed the "most important bilateral relationship in the world bar none. " The real nature of the conflict is not simply about who makes more money, but rather about who assumes world industrial and technological leadership. This article explores the origins of trade friction between the U. S. and Japan and prescribes a new relationship between the two countries based on mutual concessions.