This book examines the significance, prospects, and policy options of U.S.-Japan economic relations. Japan and the United States are the two largest economic powers. Together they account for over 30% of world domestic product, for a significant portion of international trade in goods and services, and for a major portion of international investment. This economic clout makes the United States and Japan potentially powerful actors in the world economy. Economic conditions in the United States and Japan have a significant impact on the rest of the world. The U.S.-Japan bilateral economic relationship can influence economic conditions in other countries. The two economies are highly integrated via trade in goods and services with large markets for each others exports and important sources of imports.
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