Final answer:
Japanese automakers set up production in the United States mainly because of competitive pressure, the need for market access, and to maintain a competitive advantage by avoiding trade barriers and responding to U.S. consumer preferences directly.
Step-by-step explanation:
Japanese automakers chose to produce cars in the United States primarily due to competitive pressure and the resultant need to innovate and respond to consumer demands. Initially, the Japanese economy was focused on producing low-wage, export-oriented products for the U.S. market, leveraging economies of scale. With time, Japanese car manufacturers such as Honda and Toyota gained a competitive edge with their fuel-efficient and reliable small cars. As import competition increased, and U.S. consumers started to prefer these imports, Japanese automakers established production facilities in the U.S. to better serve the market, avoid trade barriers, and maintain a competitive presence. This shift also occurred amidst the backdrop of declining unionization in U.S. industries and the global trend of multinationals looking for cost savings.
In the context of the choices provided, the best answer might be B. Japan was concerned about market access. Building cars in the United States would help Japanese automakers avoid potential trade barriers, tap directly into the U.S. market, and mitigate the risks of international trade conflicts or tariffs. It should be noted, however, that concerns about market access are intertwined with broader strategic goals such as maintaining competitive advantage and responding effectively to consumer preferences.