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- Path: sparky!uunet!timbuk.cray.com!equalizer!sdcrsi!xlnt!xlnt.com!david
- From: david@xlnt.com (David Johnson)
- Newsgroups: rec.autos
- Subject: Re: Politics of car buying(Buying a Japanese car)
- Message-ID: <1336@xlnt.COM>
- Date: 21 Jan 93 20:12:32 GMT
- References: <80816@hydra.gatech.EDU> <1993Jan20.004418.4108@EE.Stanford.EDU> <1993Jan20.010346.23399@magnus.acs.ohio-state.edu> <1993Jan20.020843.6003@EE.Stanford.EDU>
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- Organization: XLNT Designs, Inc (XDI)
- Lines: 47
-
- In article <1993Jan20.020843.6003@EE.Stanford.EDU>, sahul@loading-zone.Stanford.EDU (Zakir H. Sahul) writes:
- |> In article <1993Jan20.010346.23399@magnus.acs.ohio-state.edu>, jnielsen@magnus.acs.ohio-state.edu (John F Nielsen) writes:
- |> |>
- |> |> The U.S. also imposes it's own tarriffs on goods. If we advocate free trade
- |> |> we should also take down our own barriers.
- |> |>
- |>
- |> I agree that the US also imposes tariffs on imported goods. But my understanding
- |> of the matter is that they are no where near those imposed by other countries
- |> particularly Japan.
- |>
- |> Furthermore, if it is true that US companies have to form joint ventures with
- |> Japanese firms to have access to the Japanese market, US companies are forced to
- |> give away technology. As long as these conditions stand, US companies are at a
- |> significant disadvantage.
- |>
- |> IMHO, free trade should be promoted by making all sides lower trade barriers.
- |> But if Japan does not let us sell to it, we should not buy from it (as
- |> consumers).
- |>
- |> Also, I am not completely convinced that a trade war with Japan will not make
- |> it more open. For example, give them an ultimatum....By the second quarter of
- |> 1994, if the quarterly trade deficit with your country is not 0, then we will
- |> impose heavy tariffs on all your goods. It is left up to you to decide whether
- |> you want to export less to the US or import more from the US. It is my gut
- |> feeling that they will choose to import more. But, we all know that this is not
- |> going to happen.
-
- What Zakir says is not free trade. Requiring that the trade deficit be
- zero is even trade, not free trade or necessarily fair trade. Just for
- the sake of argument, suppose American products really are superior to
- Japanese and the prices are roughly equal w/o subsidies and there are no tariffs
- imposed by either side. The Japanese would buy more American (assuming they refused to buy American for nationalist pride) than
- Americans would buy Japanese assuming both have similar buying power.
- If this is the situation why should there be
- a zero deficit? I guarantee you the the deficit would not be
- zero, yet trade is free and unrestricted.
-
- Anyone who says the deficit must be zero or near zero does not want
- free or fair trade, he just wants the Japanese to buy more American products.
- If you want fair trade then call for there trade barriers to be lowered
- then let the market decide what the deficit will be.
-
- --
- David Johnson
- XLNT Designs, Inc. (XDI)
- david@xlnt.com
-