In this revisionist account, Howe traces the history of Japanese trade over four centuries to show that the Japanese mastery of trade with the outside world began as long ago as the sixteenth century, with Japan's first contact with European trading partners. Although profitable, this early contact was so destabilizing that the Meiji shogunate soon restricted foreign trade mainly to Asian partners. From the early seventeenth to the middle of the nineteenth centuries, Japan developed in relative isolation. Though secluded from the scientific and economic revolutions in the West, Japan proved adept at finding novel solutions to its own problems, and its economy grew in size, diversity, and technological and institutional sophistication.
By the nineteenth century, when contacts with the West were reestablished, Japan had developed a remarkable capacity to devise new economic institutions and to acquire new technologies, all the while retaining traditional values and institutions. Most importantly, Japan's long-standing reliance on its own ingenuity to solve problems continued to flourish. This tradition, born of necessity, is the most importantfoundation for Japan's current position as a world economic power.
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