EUROPEAN BUSINESS IN JAPAN - A POLICY CROSSROADS

Until the EC Commission policy statement of September 1994, few Europe ans had given much thought to EC relations with Japan. Susan Strange a rgues that this neglect is mistaken in view of the persistent unilater alism of US policy towards both Europe and Japan. Even though serious barriers to foreign-owned firms (FOFs) remain, it would be a mistake t o join the US in multilateralizing gaiatsu (foreign pressure). The his torical record shows that the US itself is partly responsible for turn ing a blind eye to Japanese protection of its home market; and, second ly, that firms and private organizations in contact with reformist Jap anese may be more effective in bringing about change.