Japanese firms have been successful in established industries in which U.S. firms were once thought invincible, as well as in newly developing industries. They have been able not only to capture third-country market share from the U.S. competition but also to obtain major footholds in the U.S. domestic market. They supplied almost 20 percent of U.S. import in 1989 and achieved their surplus in trade in manufactured goods on the basis of both high-technology and nonhigh-technology product