Japanese and American Response to Trade Friction: The Semiconductor Industry

Abstract

This chapter discusses the responses of Japanese and United States firms to the emergence of semiconductor trade fiction, focusing on responses to the 1986 Arrangement. The 1986 Arrangement Concerning Trade in Semiconductor Products was intended to address several aspects of what United States firms and the United States government viewed as unfair practices and policies used by the Japanese semiconductor firms and the Japanese government. In fact, the United States government made it clear that promises from the Japanese government and Japanese firms reform their practices, and that policies are not enough—the United States government will judge the Arrangement by the results obtained.