Question

Why did the Europeans to try to protect their auto industry from Japanese imports and do you think this was fair to European consumers?

Answer 1

Answer:- Europeans try to protect their auto industry from Japanese imports because of various factors such as Japanese imports were more affordable . Japanese products were versatile and dynamic. Toyota gain European market with cheaper imports and competed with European cars such as BMW, Mercedes benz, which were expensive. As in Japan Toyota was enjoying low cost of production and favourable government policy. In Japan skilled motor engineers were available in lower remuneration so they sell their product at cheaper price than European products. So European wanted to limit Japanese imports in their countries.

Another advantage for Toyota was offering wide range of car models in European markets. This was threatening European competitors as consumers were warming up by such wide range of diversity. On the other hand european cars was not popular in Japanese market and was too expensive. Japanese market were more receptive to domestic products compared to imports. European countries felt that it will cause gross imbalance in global trade if Japanese companies are allowed to rule over European market as Japanese companies didnot setup their plants in european countries to create employment and pay taxes.

According to my point of view European countries were not fair to European consumers as they deserve the freedom of choice. European countries should open up market for Japanese cars and choose alternative ways to shield their domestic manufacturers from adverse effects of cheap Japanese imports. Customer should be left to choose according to their preference and tastes. European countries should promote their local product instead of restricting imports from Japan which I think is inappropriate and unfair for European consumers.