Question

Which of the following best describes American​ businesses' major concern with the Japanese keiretsu​?

A.Keiretsu is similar to a labor union in the United States.
B.Keiretsu alliances result in higher prices to Japanese consumers.
C.Keiretsu own more than half of the​ Japanese-affiliated manufacturing plants in the United States.
D.This type of alliance is​ long-term.
E.Keiretsu is competition to U.S. industry.

Answer 1

American businesses' major concern with the Japanese keiretsu is that it represents strong competition to the U.S. industry due to their integrated and cooperative approach, fostering advantages in innovation, economies of scale, and specialization.

Step-by-step explanation:

The major concern that American businesses have with the Japanese keiretsu system is E. Keiretsu is competition to U.S. industry.

Japanese keiretsus are tight-knit alliances between manufacturers, suppliers, and distributors, often including banks, that work together to ensure mutual success. These conglomerates can influence entire industries, making it difficult for foreign competitors to enter the market. Keiretsu alliances can disadvantage U.S. businesses due to their long-term, integrated relationships that foster competitive advantages such as innovation, economies of scale, and specialization.

U.S. businesses are particularly concerned because keiretsu networks represent a different, collective approach to business that can prove to be more resilient and competitive in certain markets compared to the less integrated nature of American businesses. This concern was solidified during the 1980s when the US had to contend with what was perceived as unfair trade practices by Japan which led to a push for limits on Japanese car exports to the United States.