1. Was the chairman of the US company wrong for not having found out in advance about Japanese business practice? The Supreme Canning Company (the true name of the company is disguised) is an independent US packer of tomato paste and other tomato products (whole peeled tomatoes, chopped tomatoes, tomatoes and zucchini, ketchup, tomato paste, and pizza and other sauces).

The company is located in the state of California.

Although it produces some cans with its own-brand label, much of its output is canned for others and their brand names and labels are put on the cans. It produces shelf-size cans for eventual sale at retail, and gallon-size cans for use by restaurants and industrial users. It also packs tomato paste in 55-gallon drums, and in plastic containers holding approximately 0.7 cubic meters

(with the flexible plastic container held inside a heavy shipping container). Supreme Canning Company’s annual processing capacity is in excess of 100,000 tons of tomatoes (processed during an operating season of approximately three months).

The market for tomatoes is divided into three segments with distinct characteristics:

1. Fresh tomatoes are produced in many countries, with much cross-border trade and frequent trade disputes. Canadian and US farmers have had a series of trade disputes with each country claiming dumping by companies in the other of fresh tomatoes of different varieties at different times. In 2004 the year-round supply of fresh tomatoes from Mexico was depressing prices for US farmers

(www.dailydemocrat.com/2004). Special varieties of hothouse tomatoes from The Netherlands are sold in other European countries and overseas