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Losers from japanese wheat subsidies

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Tens of thousands of Japanese farmers continue to grow wheat despite the fact that the wheat grown in North America, Argentina, and Australia is far cheaper and of superior quality. The Japanese farmers stay in business thanks to the hefty subsidies paid by the Japanese government. As a result, wheat prices in Japan are substantially higher than they would be if a free market were allowed to operate.

Please read "Country Focus: Subsidized Wheat Production in Japan" (on page 208 in Global Business Today' by Charles Hill,7th edition or on page 193 in 8th edition Global Business Today' by Charles Hill) and discuss the following:

  1. Who are the winners and who are the losers from Japanese wheat subsidies?
  2. Why does Japan continue to subsidize its wheat farmers when cheaper wheat is readily available in international markets?
  3. Are these subsidies in the best national interests of Japan?

Reference no: EM131423617

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