ABSTRACT
Despite the trade friction created by Japan's export penetration of Western markets and, more recently, the take-off of Japanese overseas direct investment, the dependence of Japan's industries on foreign markets is less than in the USA and Germany. Nevertheless the concentrated pattern of Japanese exports and investment in the machinery industries, in the USA and Europe, has led to trade friction. The internationalization of Japanese industry is likely to continue. Thus, Japanese companies will continue to have to cope with management problems and issues arising from trade friction.
