Foreword Richard R. West; 1. Beyond trade friction: an overview Julianne Nelson; Part I. Macroeconomic Policy Issues: 2. Japan and the United States: the need to prosper together Alan H. Greenspan; 3. Internationalization and restructuring of the Japanese economy Haruo Mayekawa; 4. The limits of monetary coordination as exchange rate policy William H. Branson; Part II. Commercial Policy Issues: 5. A giant among Lilliputians: Japan's long-run trade problem Jagdish Bhagwati; 6. What do VERs do? Kala Krishna; 7. Domestic and international mergers: competition or cooperation Ryuzo Sato and Richard Zeckhauser; Part III. Financial Integration Issues: 8. Competitive performance and strategic positioning in international financial services Ingo Walter; 9. Capital transfers from Japan to the United States: a means of avoiding trade friction Toshio Shishido; 10. The efficiency of US and Japanese stock markets Toshiyuki Otsuki and Noriyoshi Shiraishi; Index.