“Part of this happened because America had very open markets, while Europe and Japan were way more protectionist to their firms. In addition, America had significantly stronger currencies than Japan, West Germany, and etc, making it easier for those countries to export to America, while making American products more expensive. “ - the implication I think is that it’s a one way deal. A stronger currency also makes it easier to buy out the foreign competitors, unless their governments don’t let you. So you have the uneasy coexistence of market mechanisms on the one hand, and arbitrary rules (not capricious, but arising out of factors other than market efficiency) on the other.
“Part of this happened because America had very open markets, while Europe and Japan were way more protectionist to their firms. In addition, America had significantly stronger currencies than Japan, West Germany, and etc, making it easier for those countries to export to America, while making American products more expensive. “ - the implication I think is that it’s a one way deal. A stronger currency also makes it easier to buy out the foreign competitors, unless their governments don’t let you. So you have the uneasy coexistence of market mechanisms on the one hand, and arbitrary rules (not capricious, but arising out of factors other than market efficiency) on the other.