ABSTRACT
The United States has a large land area, many natural resources, including abundant energy supplies, a massive defense establishment, a low rate of savings, and a diverse economic structure. Such structural differences are at the heart of US-Japanese trade frictions, whether one is talking about the issue of access of US agricultural commodities, and services to the Japanese market, or the competitive pressures created by Japanese manufactured exports to the United States and the rest of the world market. In the way the United States can begin to address the fundamentals behind its persistent trade friction with Japan, while improving the strength and competitiveness of its economy. Both the American and Japanese economies are evolving toward a post-industrial or "tertiary" economy. Production of primary and manufactured goods accounts for a declining proportion of GNP while the services sector is growing.
