The U.S. automotive manufacturers have complained about Japanese automotive imports and that the U.S. car firms are locked out of the Japanese market. The Japanese have countered that the U.S. firms have not done their homework;

they offer cars that are too big or are not fuelefficient.

Although U.S. car sales have decreased in the United States, Japanese car sales have increased. Japanese manufacturers have begun to assemble cars in the United States; many U.S.

firms are moving part of their operations to Mexico. Discuss the implications to these firms as they globalize.