Turning the Tables: A Machiavellian Strategy for Dealing with Japan

In this provocative look at Japanese-American business relations, Burstein ( Yen! ) analyzes the strengths and weaknesses of the two countries' economic practices. He suggests turning confrontational politics into a mutually beneficial alliance, which he believes both countries are ready for. Citing Machiavelli's advice to distinguish between virtues that are ruinous and vices that are profitable, he recommends that the U.S. welcome increased Japanese investment in its plants and worker training, while at the same time demanding increased Japanese use of U.S. parts and supplies. While deploring monopolistic practices, he thinks American business should encourage more industrial networking: instead of pursuing confrontation on rice exports of Japan, U.S-based companies should focus on more productive technological cooperation and on developing a genuine Pacific free market. He advocates federal support of some fledgling industries and calls for well-formulated government industrial policy. He sees an opportunity for estabishing a productive alliance now while Japan's economy is in the doldrums. (Feb.)