ABSTRACT
The international trade of the United States and japan results mainly from differing relative endowments of labor, land, and capital. Japan is densely populated with a land area about as large as California and nearly six times the population. The Japanese people, highly skilled and industrious, have at their disposal an up-to-date technically sophisticated industrial plant. With these characteristics, virtually no abundant raw materials, and limited amounts of arable land, Japan's pattern of international economic comparative advantage is clear. Japan should import raw materials and agricultural commodities and export finished goods, both consumer products and manufactured intermediate products.
