Showing papers in "Business Economics in 1992"

International Perspective: Trading with Japan: Why the U.S. Loses — Even on a Level Playing Field

Abstract: Unlike U.S. firms, Japanese firms do not seek to maximize profits, either short or long run. Instead, Japanese firms seek to maxi mize growth, maximize market share, max imize employee welfare, or promote com pany prestige. Consequently, Japanese firms will sell more goods at lower prices, reduce marginal costs faster in technologi cally progressive industries, decouple pro duction and price decisions from production costs, act as if they had a lower cost of cap ital, and overpay for assets. The implica tions of such behavior are not good for U.S. and European companies.