Japanese Competition The need for revising some current views about
Japanese trade competition is shown in a cogent memorandum prepared by Dr. T. E. Gregory, obtainable from the Association of British Chambers of Commerce. The existence of lower standards of living, he insists, does not constitute the main problem of Japanese com- petition. Efficient methods of production are the main cause of the low cost per unit of output in Japan. Again, -her exports have not increased to so great an extent as is supposed, and consist mainly of textiles sold in the Eastern markets. It has to be remembered that Japan is a buyer as well as a seller. The cheapness .of sonic of her products, if sold in certain markets, should allow a margin for the purchase of European goods; The upshot is that you will not necessarily -benefit British trade by attempting to oust Japanese trade, though much may be done by agreed division of the markets. Dr. Gregory's method of argument is not only applicable to the problem of Japanese com- petition. The purchasing power of the world everywhere is being diminished by restrictions due- to fear of com- petition ; and it is lack of a margin of purchasing power which is strangling international trade.
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