ABSTRACT
Japanese industries are building much of their new manufacturing capacity outside Japan in order to capitalize on locally available raw materials and lower wages. Japan has become a prominent, indeed the preeminent, provider of assistance to developing countries. Japan is often a key participant in the summit meetings of the industrial democracies, and it was a prime mover in organizing the Uruguay Round of multilateral trade talks. The former frequently dominate public discussions and typically focus on complaints that Japan is never willing to open its market or, on the other end of the spectrum that United States (US) businesspeople are not trying hard enough to crack the Japanese market. Japan's role in augmenting its own growth, opening its markets, and expanding capital transfers to less developed countries is crucial. The US welcomes the large prospective increases in Japan's foreign assistance budget.
