ABSTRACT
On the surface, Japanese foreign economic policy in the 1990s bears little resemblance to that pursued during the first two and a half decades or so following World War II. In broadbrush terms, the earlier policy was marked by protection from most imports and capital investments, by restrictions against the outflow of capital from Japan, by a high reliance on technology purchases from other advanced economies, by tight control over foreign entry into the labor market, and by a foreign aid policy designed to develop Asian markets for Japanese manufacturing firms. Economics took clear priority over security considerations, and low levels of defense spending freed up investment capital for use in industrial development. Few foreigners lived or worked in Japan, and most Japanese citizens had little direct experience abroad, since foreign travel was economically difficult and was impeded by government restrictions and a weak yen. 1
