Purdue Business Tips
June 1995
Trade imbalance is linked to myths of Japanese quality
The reason the trade imbalance between the United States and Japan has endured, many
experts say, is because Americans regard Japanese products as higher in quality than
their domestic counterparts. But Ray Eberts, professor of industrial engineering
at Purdue, and his wife, Cindelyn, say Japanese quality is a myth, and that American-made
products are just as good, if not better. The Eberts spent three months in Japan,
and when they returned to the states they felt compelled to write their new book,
"The Myths of Japanese Quality." In the book, the couple outline 10 myths -- six having to
do with management techniques and four with products -- that Americans have bought
into. For example, the Eberts found that in 1993, a Honda was almost 13 times as
likely to be recalled as a General Motors car.
"A few years ago, it was probably true that Japanese products were better than American,"
Ray Eberts says. "But that's no longer true. Consumer Reports is one of the few publications
that consistently ranks Japanese products higher than American products. But that publication is based on consumer anecdotes, and consumers are still caught
up in the myth." Eberts isn't into Japan-bashing and doesn't argue that all Japanese
products are poor quality. "What I hope Americans will realize is that our products
aren't as bad as we think," he says. "The myth of Japanese quality is really a sign pointing
to another myth -- the myth of poor American quality." CONTACT: Ray Eberts, (765)
494-5429; Internet, eberts@ecn.purdue.edu Copies of the book are $24.95 and are
available from Prentice-Hall Inc., (800) 382-3419.
Governments are international tourism's biggest obstacle
Although tourism is one of the largest industries in the world, it could be even larger
if government-imposed obstacles such as tariffs were reduced or removed, says William
Theobald, Purdue professor of recreation studies. "There are enough barriers to international tourism as it is, from language to a lack of financial resources," he
says. "None of these is as restrictive as governmental barriers" such as passport
and visa regulations, import duties and departure taxes. Theobald says reducing restrictions on tourism would foster "faster economic growth, greater employment opportunities,
increased consumer confidence, enhanced political stability, and greater progress
toward world peace." CONTACT: Theobald, (765) 494-3153.
Japanese pay a high price because of illegal cartels
If the United States really hopes to export more goods to Japan, it first must get
that country to crack down on its illegal monopolies and cartels, says a Purdue assistant
professor of political science. Mark Tilton says it's the informal and illegal cartels in Japan that keep imports out of that country. He says the Japanese government
indirectly and sometimes directly supports these cartels. Tilton says Japan has made
token attempts at cracking the cartels, but has not really attacked the core of the
problem. He says Japanese cartels are so strong that, for example, Japanese manufacturers
buy overpriced, domestically produced petrochemicals even when imports average more
than 40 percent less. Tilton recently made a presentation at the symposium, "Japanese Public Policy: Perspectives & Resources," in Washington, D.C. The symposium was sponsored
by the Japan Documentation Center of the Library of Congress, which helps Americans
gain access to Japanese public policy information. CONTACTS: Tilton, (765) 494-4176, or Mindy Kotler, director of the Japan Information Access Project, (202) 332-5224.
More on-campus interviews bode well for grads
The good news for students entering the job market is that the number of on-campus
interviews is picking up, indicating an increase in hiring, says Richard Stewart,
director of the University Placement Service at Purdue. Stewart says on-campus interviewing increased this year for the first time since the 1988-89 school year, with 658 companies
conducting interviews, up from 554 last year. Larger firms such as General Motors
have returned to campus, and the number of smaller firms, such as personal-computer
and consumer electronics companies, is growing as well. In high demand are graduates
in computer science and engineering, such as programmers, systems analysts and designers
of wireless communications products. Stewart says jobs eliminated by downsizing at large companies may be offset by job growth among smaller companies. John McLaughlin,
interim dean of Purdue's Schools of Engineering, says the turnaround in the economy
may be the reason why this year was far better than last year in terms of job offers
to Purdue's mechanical, electrical and civil engineers -- a large portion of engineering
graduates. He says civil engineers for infrastructure development and environmental
services are hot again. CONTACTS: Stewart, (765) 494-3981; McLaughlin, (765) 494-5346.
Purdue News Service: (765) 494-2096; e-mail, purduenews@purdue.edu
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