The American and Japanese Auto Industries

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"At the beginning of the decade of the 1970s, "Detroit" was shorthand both for the American automobile industry and for American industrial leadership and muscle. Both, in the eyes of most of the American public, were essentially unchallenged. A decade later, the American automobile industry appeared to be in a state of collapse. Imported cars, mainly Japanese, had made enormous inroads into the American domestic automobile market, inroads driven--at least initially--by the Japanese carmakers' ability to provide their product at lower cost to the consumer.

From the time that Japanese imported cars first became highly visible on American roads, the inroads of the Japanese have been accompanied by an increasingly heated debate over whether the success of the Japanese imports was based on genuine competitive advantages, or at least in part by unfair trade ... "

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