ABSTRACT
The increasing trade and investment frictions so certainly have economic causes, which in part stem from an extraordinary growth in economic interaction and interdependence at a global scale, together with the deregulation and economic expansion of financial markets. The economic clash between the US, Europe and Japan is only the most serious symptom of a larger breakdown occurring at a broader worldwide level. The Japanese point to America's own macroeconomic problems caused by the country's persistent overspending. Conversely, an objective comparison of cultural differences reveals that Western culture may contain many elements that Japan's next socio-economic phase will require. When the threat of global war has receded the world can turn to more pressing economic and social problems. Yet it would be a colossal tragedy if the great powers were to engage in economic wars with each other, starting with Japan. There is no time to lose in trying to deal more adequately with the distorted perceptions which fuel hostility.
