[Tulane]

If you think protectionism works in over the long haul, take a look at Japan's lost decade.

[jb6]

Yes, lets look at Japan. Japan had free trade and tech transfer with S.Korea, until S.Koreans left the Japanese plants and openned their own and competed away the Japanese tech advantage. Japan put a full block on all tech transfers to S.Korea in the early 1990s and now is much higher tech then S.Korea.

Japan's problem is quite different and has nothing to do with protectionism: it is 1.the banking system is in bed with industry and because of honor can not divest of failing companies and 2. the Japanese were convinced to save and have a savings rate of around 50%, in other words, they don't buy anything.