The Occupation authorities allowed Japan to kick out all the U.S. car companies
from their domestic market. That gave Toyota and others the advantage of a 100%
protected domestic market from which to launch their 4 or 5 assaults on the U.S.
market. Even with that, it was the complacency of the U.S. manufacturers that
allowed the Japanese to get in traction in the U.S. Their only open door was
through better inventory control and lean manufacturing since they didn’t have
capital, technology, or market experience to compete head-on with any of the Big

In 2009 with China, there’s of course substanital domestic market
protection in China but it is clearly limited, and being phased out, by China’s
WTO undertaking. And as for complacency about China, I don’t think you or I or
any U.S. company is feeling complacent these days.