The paper compares the trends and determinants of US profits with those of Japan, Germany, and Canada in a model of pricing-to-market in the export and domestic markets. It is found that during the 1970s increasing unit production costs lowered profits in all countries. After 1980, cost factors...

The paper examines whether Japanese exporters changed their strategic pricing behavior as a result of the profit squeeze of the late 1980s. It shows that shocks such as the end-of-bubble, the prolonged yen depreciation, and the Asian crisis affected export prices. These effects, however, are too...