This book describes European and Japanese nontariff barriers (NTBs)
in areas of high-technology trade and discusses their impact on the
international behavior of U.S. firms. This study was prompted by
the rising incidence of nontariff measures in high-technology
sectors, as governments increasingly attempt to promote the growth
of new industries through various domestic subsidy policies and
import protection. As applied in high-technology sectors,
protectionism typically includes discriminatory government
procurement, incompatible standards and product certification
procedures, performance requirements, import licensing, and a
failure to protect intellectual property. The authors use case
histories to explore the incidence and impacts of these nontariff
measures. Impacts are described in company-specific terms and
include, for example, company efforts to redeploy research and
development activities within the protected market, thus
stimulating increased transfer of technology; alteration of product
characteristics and the direction of research and development to
satisfy local specifications; joint venturing with local partners,
as well as with larger U.S. firms with an established market
position; and abandoning the market entirely. The book includes a
number of policy recommendations designed to reorient international
trade negotiations toward the wide range of nontariff barrier
impacts and the particular difficulties that smaller firms have in
dealing with import restrictions.
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