Economic relations between Japan and the United States could be very important for the internal economy of the United States, said Clark Neher, NIU professor of political science.

“At this time, Germany is the United States’ most important trading partner, but they (Germany) are concerned that the United States (is) looking to Asia as an economic trading partner,” Neher said.

Germany’s role might move to that of a secondary trader with the United States, he said. Asia’s notability as an economic power to be reckoned with has grown in a relatively short period of time.

“As an example of how powerful Asia has become, the gross national product of South Korea now surpasses that of Great Britian,” Neher said.

But Asia’s—and specifically Japan’s—quick rise to the top as a leading economic power hasn’t been a quirk. Neher contributes Asia’s success to a number of factors.

“Asians have excellent work ethics, management relations, inexpensive labor, high quality products and also a high level of savings,” he said.

Neher said many parts of Asia, especially Japan, are investing heavily in the United States and this will benefit both countries.

“Much of Japan’s interest in the United States is because the dollar has lost its value,” he said. “Real estate is much cheaper in the United States, so investors buy land in this country.”

“For example, if foreign investors wanted to buy the Sears Tower, it might cost them one billion dollars,” Neher said. “But because the dollar has lost its value, that same amount of money in foreign currency would cost ten billion dollars, so it would actually turn out to be a deal for investors.”

Benefits that foreign investors bring to the United States can include new jobs made available when the Japanese buy firms and businesses in the United States and employ American workers.

“Another aspect of foreigners buying into America is that the influx of capital into the United States is desperately needed,” he said. “The capital has left the United States because of an (annual) trade deficit which is now at about $150 billion.”

The U.S. trade deficit is now about $60 billion per year, in addition to major deficits with Korea and Japan. Taken together, Neher said these deficits have a grave impact on our internal economy.

As far as the future relationship between Japan and our country is concerned, Neher said it might grow “increasingly tense,” but the United States is not in danger of losing its ranking as a highly powerful economic force.