Saturday, April 30, 2011

Can someone find me japan's trading barrierrs?

Question:




Answer:


Regarding tariffs, compared to the past they are largely gone, with the exception of agricultural goods.
Japan still pampers its farmers, which have 4 times the voting power of the urbanite due to depopulation of the rural areas especially after WWII and no change in the law regarding representation.
Rice, wheat, dairy and sugar are some examples.
But for other goods there are many non-tariff barriers (NTBs) that keep foreign goods out. Some are cultural, others aren't. US cars have never made a dent in the Japanese market due to shoddy reputations, larger size, bigger engines (which get taxed more), etc. Penetrating the Japanese market is also hard because you need to speak the language of the customer, tailor products for Japanese consumer's tastes, get through the monstrously complicated distribution system, follow local content and ingredient laws, etc. It is tough, but it can be done as the many foreign products in Japan will attest. For other manufacturers though it is not worth the hassle, even if the Japanese market is sizable.

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