Question

the japanese ver work in favor of US auto manufacturers. agree or disagree? and why?

Answer 1

In 1981 a volunrary restraint was established in 1981 by USA to compete the increasing demand of fuel efficient cars produced by japanese motor companies .In 1981 voluntary restraint agreement limited the imports of japanese cars to 1.68 million to US and this limit was annually changed by the US government .This quota has constantly been changed within different time periods and the trade deficit lead to increase the quota time period for one more year This quota was raised to 1.85 million in 1985.

To encounter this problem the japanese companies opened the production units in USA and in this production the Japanese companies merged with big production firms of USA ,like Mitsubishi which became Diamond Star Motors and Mazda that converted into AutoAlliance International .In these transformation big companies like Acura , Infiniti distanced from their parent company to generate more income .

With all the above points when kept in concern it can be concluded that Japanese VER work in favor of US auto manufacturers, and completely agree with the above statement.