winning_with_technology

In the 1970s, Japanese petrochemical industry grew very
fast and able to catch up with petrochemical industry in US.
Synthetic rubber from Japan exported to many countries in
Asia, Europe and USA.
In August 15,1971, because of suffering from double
deficits, President Richard Nixon announced in broken away
from Bretton Woods system which tighten the convertible
rate of US$ to gold. which referred as Fixed Rate System.
Countries like, Japan, UK, France, Germany, had to shifted
to floating exchange rates. Meanwhile, President Nixon
imposed an import duty surcharge of 10 percent to
discourage the imports to US. President Nixon had targeted
on Japan. Japanese yen were under pressured to appreciate
its value versus US dollar, in order to reduce trade deficits
between US and Japan. Japanese yen which was kept at
360 yens per one $US since 1944 till 1971, had to increased
to $280 yens per one $US and to 200 yens per one $US
in 1978. All these were under US government policies to
counter Japanese competition to US trades.
Banja Junhasavasdikul, Ph.D.
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