Final answer:
Japanese automakers chose to produce cars in the United States to avoid import restrictions, cater to the American market, and compete with American automakers.
Step-by-step explanation:
Japanese automakers chose to produce cars in the United States for several reasons. Firstly, by establishing production facilities in the US, they were able to avoid import restrictions and tariffs, which made their cars more affordable for American consumers. In addition, producing cars locally allowed them to cater to the specific preferences of the American market, such as manufacturing larger vehicles like trucks and SUVs.
Lastly, setting up manufacturing plants in the US helped Japanese automakers create jobs and contribute to the local economy.
The 1970s witnessed a shift in the US automotive market, as American cars were perceived as poorly built and fuel-inefficient. Japanese automakers like Honda and Toyota capitalized on this opportunity by producing smaller, more fuel-efficient cars that gained popularity among American consumers. This success prompted Japanese automakers to establish production facilities in the US to meet the growing demand for their vehicles.
Moreover, international trade and competition played a significant role in the decision of Japanese automakers to produce cars in the US. By establishing manufacturing plants in the US, they were able to compete directly with American automakers such as General Motors, Ford, and Chrysler. This competition fostered innovation and led to the improvement of American cars, as automakers strived to meet consumer demands and outperform their rivals.