Unformatted text preview: expensive for Americans to buy. Now a little history. In 1986, the dollar was very strong relative to the yen. Japanese motor vehicles were pretty cheap for U S consumers relative to American made motor vehicles were pretty cheap for U.S. consumers relative to American made motor vehicles. The CEO’s from the “big three” U.S. auto-makers called then President Reagan for a meeting. At this meeting, the CEO’s asked Reagan to intervene in the foreign currency markets to “weaken” the dollar. This would cause Japanese auto prices to U.S. consumers to increase. The theory was to make Japanese imports more expensive so that Americans would buy more Ford, General Motors, and Chrysler products. The U.S. auto-makers allegedly told the President 1 that this action would allow them to regain market share from the Japanese and improve the health of the U.S. auto industry....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10