Abstract
The medical equipment industry, once a source of American trade strength, is now showing a deficit in U.S.-Japan sales. While trade barriers and exchange rates have adversely affected American medical equipment sales in Japan, they are not the complete or even the primary explanations underlying trade patterns. What is interesting about this sector is that American sales of medical equipment have been increasing in Japan. The deficit has occurred because American purchases of Japanese goods have risen even faster. It is important that this innovative industrial sector improve sales in Japan. This article discusses the unique features of Japanese public policies toward the regulation and sale of medical equipment and analyzes successful corporate strategies for increasing sales in Japan.