| Preface | p. xiii |
| Acknowledgments | p. xvii |
| America's High-Technology Trade Challenge: The Perspective of a Cautious Activist | p. 1 |
| Introduction | p. 1 |
| Setting the Stage: The Nature of Trade Conflict in High-Technology Industries | p. 3 |
| High-Technology Trade Conflict with Japan and Europe | p. 5 |
| Should the United States Care? The Answer of a Cautious Activist | p. 9 |
| The Plan of the Book | p. 14 |
| Trade and System Conflict in Technology-Intensive Industries | p. 17 |
| Trends in High-Technology Competition Between the Developed Countries | p. 17 |
| The Roots of High-Technology Trade Conflict: Trade Barriers, Structural Impediments, and Structural Differences | p. 29 |
| Why High-Technology Industries Matter for US Economic Welfare | p. 32 |
| A Brief Concluding Comment | p. 45 |
| From MOSS to Motorola and Cray: Managing Trade by Rules and Outcomes | p. 53 |
| The Real Japan Problem | p. 53 |
| The MOSS Talks in Technology-Intensive Products: Trade Management Through Sectoral Rules | p. 58 |
| Motorola and Japan's Cellular Telephone Market: A Step Closer to Managed Trade | p. 66 |
| The Third-Party Radio Conflict: A Successful Managed Trade Resolution | p. 71 |
| Lessons from Motorola's Experiences in Gaining Access to the Japanese Market | p. 73 |
| Cray and the Japanese Supercomputer Market: Procurement, Infant-Industry Tractics, and Reciprocity | p. 76 |
| Concluding Remarks | p. 82 |
| Managing Trade and Competition in the Semiconductor Industry | p. 85 |
| Industry Economics and the Evolution of Comparative Advantage | p. 88 |
| From Manipulated to Managed Trade: The US-Japan Semiconductor Trade Agreement | p. 106 |
| The Effects of the Agreement on Trade and Pricing | p. 111 |
| The New Semiconductor Trade Agreement: The Story Continues | p. 130 |
| An Overall Assessment of the SCTA | p. 132 |
| Lessons for US Trade Policy from the Semiconductor Experience | p. 133 |
| Industrial Policy and Trade Management in the Commercial Aircraft Industry | p. 155 |
| Historical Decisions in a Strategic Industry | p. 155 |
| Economics of the Industry | p. 161 |
| History of the Industry | p. 176 |
| The Economic Analysis of Government Intervention in the Commercial Aircraft Industry: The Case of Airbus | p. 192 |
| Trade Friction in the Aircraft Industry | p. 195 |
| Challenges Facing the American Commercial Aircraft Industry | p. 210 |
| Conclusions | p. 214 |
| Managing Trade and Investment: Europe's Evolving Strategy in the Electronics Industry | p. 217 |
| Videocassette Recorders: From Managed Trade to Managing Investment | p. 220 |
| High-Definition Television: The Strategy to Create European Champions | p. 237 |
| Understanding Europe's Evolving Strategy Toward the Electronics Industry | p. 244 |
| Lessons for US Trade and Industrial Policy | p. 249 |
| A Cautious Activist Agenda for U.S. Policy in High-Technology Industries | p. 253 |
| Expanding Market Access | p. 255 |
| The Pros and Cons of Antidumping Remedies | p. 267 |
| Strategic Threats in High-Technology Industries | p. 274 |
| Subsidies, Foreign Targeting, and Countervailing Duties | p. 280 |
| The Need for Complementary Technology and Industrial Policies | p. 286 |
| Some Concluding Thoughts | p. 295 |
| Index | p. 311 |
| Tables | |
| Cases of trade conflict in technology-intensive industries treated in this book | p. 15 |
| Alternative classification schemes for high-technology industries | p. 20 |
| High-technology exports as a share of total manufactures exports, selected countries, 1970-86 | p. 22 |
| Shares of world high-technology exports, selected countries, 1970-89 | p. 23 |
| Revealed comparative advantage in selected high-technology products, selected countries, 1970-89 | p. 24 |
| Shares of world trade in RandD-intensive electronics products, selected countries, 1970-89 | p. 25 |
| United States, Japan, and Europe: export shares in selected electronics products, 1980-88 | p. 26 |
| United States and Japan: trade in electronics products, by type of product, 1980-91 | p. 27 |
| United States: trade in high-technology products, 1980-88 | p. 28 |
| United States: high-technology exports and imports as a share of total value added, by industry, 1980-88 | p. 29 |
| United States: high-technology expenditures for RandD, by industry, selected years, 1979-89 | p. 33 |
| United States: production and value added in selected high-technology industries, 1989 | p. 34 |
| United States: employment in selected high-technology industries, 1989 | p. 35 |
| United States: scientists and engineers employed in selected high-technology industries, 1989 | p. 36 |
| United States: value added per worker in selected high-technology industries, 1989 | p. 37 |
| United States: compensation in selected high-technology industries, 1989 | p. 38 |
| Assessments of US and Japanese comparative standings in selected technologies, Japanese Ministry of International Trade and Industry, 1983 and 1988 | p. 46 |
| Relative US position in critical defense technologies | p. 47 |
| Position of the US computer industry in selected critical computer technologies, 1990 and projected 1995 | p. 48 |
| Assessments of US standing in selected high technologies by the Council on Competitiveness | p. 49 |
| Relative performance of Japanese imports in industries addressed in the MOSS negotiations, 1985-88 | p. 62 |
| United States: trade in semiconductors, by product type, 1966-91 | p. 94 |
| Joint research and development projects in microelectronics sponsored by the Japanese Ministry of International Trade and Industry (MITI) | p. 96 |
| Japan: trade in semiconductors, 1967-90 | p. 104 |
| Average selling prices for 256-kilobyte and 1-megabyte DRAMs, 1984-92 | p. 115 |
| Average selling prices for 256-kilobyte and 1-megabyte EPROMs, 1984-89 | p. 122 |
| United States: semiconductor imports as a share of total semiconductor consumption, 1982-89 | p. 129 |
| Japan: semiconductor imports as a share of total semiconductor consumption, 1982-89 | p. 130 |
| Japan: semiconductor imports from the United States and semiconductor sales by US companies in Japan, 1984-89 | p. 131 |
| Shares of production of integrated circuits produced offshore, by home country of parent | p. 144 |
| Orders of narrow- and wide-body commercial aircraft, by company and model | p. 158 |
| Aircraft company revenues from military aircraft and related sales, 1989 | p. 160 |
| Costs to develop selected commercial aircraft | p. 163 |
| Public launch aid for Airbus Industrie, by country and aircraft model | p. 174 |
| Production of narrow-body commercial jet aircraft, by model, 1952-90 | p. 178 |
| Production of wide-body commercial jet aircraft, by model, 1969-90 | p. 180 |
| Geographical composition of world imports of aircraft, 1976-87 | p. 196 |
| Geographical composition of world exports of aircraft, 1976-87 | p. 197 |
| Geographical composition of world imports of aircraft engines, 1976-87 | p. 198 |
| Geographical composition of world exports of aircraft engines, 1976-87 | p. 199 |
| Trade balances in information technology and telecommunications, by region, 1986-89 | p. 218 |
| European Community: trade deficit in electronics, 1988 and 1989 | p. 219 |
| Costs of protection in videocassette recorders | p. 226 |
| Europe: trade deficit in videocassette recorders, 1980-88 | p. 227 |
| Japanese share of the European videocassette recorder market, 1986 | p. 229 |
| Market shares in videocassette recorders, by country, 1988 | p. 235 |
| Japan: exports of videocassette recorders, 1981-88 | p. 236 |
| From multilateral rules to bilaterally managed outcomes: an anatomy of the cases | p. 256 |
| Figures | |
| United States: trade surplus with Japan in selected commodities, 1987 and 1990 | p. 54 |
| United States: trade deficit with Japan in key machinery industries, 1987 and 1990 | p. 55 |
| United States, Japan, and Europe: shares of the worldwide semiconductor market, 1981-90 | p. 105 |
| United States, Japan, Europe, and Korea/Taiwan: shares of the worldwide DRAM market, 1978-91 | p. 106 |
| United States, Japan, and Europe: shares of the worldwide EPROM market, 1978-89 | p. 108 |
| Japan: shares of the semiconductor market held by non-Japanese companies, 1985-91 | p. 111 |
| Prices for 256-kilobyte and 1-megabyte DRAMs, by country of manufacturer, 1987-89 | p. 116 |
| Cost estimates and average selling prices for 1-megabyte DRAMs, 1987-91 | p. 118 |
| Cost estimates and average selling prices for 1-megabyte EPROMs, 1987-91 | p. 123 |
| Prices for 256-kilobyte EPROMs, by country of manufacturer, 1987-89 | p. 124 |
| Shares of the worldwide 1-megabyte EPROM market, by company, 1990 | p. 125 |
| Shares of the worldwide microprocessor market, by company, 1990 | p. 127 |
| Commonality of components among Airbus models | p. 164 |
| Boxes | |
| Excerpts from the GATT Agreement on Trade in Civil Aircraft | p. 200 |
| Provisions of the 1992 agreement between the United States and the European Community on trade in civil aircraft | p. 208 |
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