In addressing a problem as complex and multidimensional as trade friction and economic policy between Japan and the United States, one must know where to begin and what one can realistically expect to accomplish. With respect to the first point, an appropriate beginning seemed to be in assembling a multitalented group of experts from both Japan and the United States to discuss the problems involved and to suggest solutions. The list of contributors to this volume is distinguished; it includes leading academics, businessmen, and government officials from both Japan and the United States. The result, we feel, is a volume that is balanced, first, in the sense that Japanese–U.S. trade friction is examined from the perspective of both sides and, second, in the sense that both theory and policy are put to effective use.

What can one realistically expect to accomplish in a conference volume of this type? At its best, such a volume can serve as a useful input into policy decision making. As the Japan–U.S. Center's first conference volume, we hope that our efforts have had this effect.

The purpose of this volume is to examine the problem of trade friction and economic policy. As is evident from its title, the volume addresses the major issues affecting Japanese–U.S. trade friction and discusses policy options for dealing with trade friction.

Trade friction comes in a variety of forms. First, there is friction that results from the closing of one's markets to outside competition. Second, there is friction created by market instability from supply restriction and rationing of demand. Third, market invasion by unwanted foreign goods competition is yet another source of friction.