Foreign Trade and Direct Investment
The composition of goods exported to and from Japan has changed considerably in the last two decades. For example, Japanese statistics show that automobiles and auto parts exported from Japan to the U.S. and to Canada increased from US$10.1 and 0.6 billion, respectively, in 1980 to US$23.6 and 2.9 billion in 1991. And office equipment exported from Japan to the U.S. and to Germany increased from US$0.8 and 0.2 billion, respectively, in 1980 to US$10.5 and 2.4 billion in 1991. Increases in exports of automobiles and office equipment were achieved despite an appreciation of the Japanese currency by more than 100% during this period. During the same period steel products exported from Japan to the U.S. and Canada declined from US$2.7 and 0.25 billion, respectively, to US$2.1 and 0.16 billion. Also during the same period Japanese imports of oil declined from US$52.8 to 30.2 billion, imports of textile and steel products increased from US$3.2 and 0.9, respectively, to US$13.7 and 5.5 billion, and office equipment imported from the U.S. increased from US$0.7 to 3.4 billion.
Note that the Japanese government export figures are based on Free-On- Board (FOB) prices including the cost of goods and delivery onto a carrier. Their import figures are based on Cost-Insurance-Freight (CIF) prices including the costs of goods, insurance and freight. This practice of measur-