ABSTRACT
The weakness of Japan’s international financial position obliged her throughout the 1950s to maintain stringent controls over foreign trade and foreign exchange transactions. Most of Japan's imports consist of raw materials and fuel which Japan wants to acquire at the lowest possible prices and she has always been ready to admit these without restrictions. The highly integrated character of much of Japan's economy may sometimes lead to discrimination against outside suppliers-including overseas suppliers-to the home market. The origin of Japan's mercantile organisation is not far to seek. The predominance of the great merchants was strengthened during the period in which Japan's foreign trade was subject to stringent and complicated controls, since firms without special experience found these perplexing. The quantitative restrictions on imports and the export subsidies have been replaced to some extent by other kinds of restrictions, or compensation provided for producers damaged by liberalisation.
