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Essay / Research Paper Abstract
A 5 page paper that discusses the auto parts industry in Japan and more specifically exporting auto parts to Japan. Data regarding the size of the market and the proportion of imports from the U.S. are included. The writer comments on the difficulties inherent in exporting these kinds of goods to Japan. Bibliography lists 7 sources.
Page Count:
5 pages (~225 words per page)
File: MM12_PGautp.rtf
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Unformatted sample text from the term paper:
manufactured in the world each year. This inherently means that Japan needs the most auto parts in the world. Fisher said that only 8 percent of all auto parts exported
by the U.S. goes to Japan (2000). Japan guards its auto parts industry carefully providing protection for Japanese auto parts companies (Fisher, 2000). The auto parts industry in Japan
is one of the nations largest industries with annual revenues in excess of $119 billion. Auto parts manufacturers in the U.S. hold a 37 percent share of the imports into
Japan. Even so, total imports into the country represent only about 2 percent of the total value of domestic auto parts (The U. S. Commercial Service, 2002). The following table
illustrates the size of this market and its pattern of imports and exports. Figures are reflected in millions of U.S. dollars (U.S. Department of Commerce, 1999). (US$ millions) 1996
1997 1998 Total market size $119,338 $119,266 $119,100 Total local production 150,943 146,041 146,100 Total exports 33,962 29,816 30,000 Total imports
2,357 3,041 3,000 Imports from the U.S 885 1,143 1,257
The Auto/Parts Framework Agreement signed on August 23, 1995 opened up the Japanese market for American auto and auto parts imports. Unfortunately, this occurred just prior to the economic
slump in Japan, which deflated domestic and foreign auto parts sales in the country (U.S. Department of Commerce, 1999). In spite of the economic slump, total imports increased, then decreased
slightly but those from the U.S. grew each year while the total market size decreased. In fact, exports from the U.S. to Japan increased by 20 percent in 1996 and
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