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Response to Comments: /TotW/encyclopedia.html

from James Keaton (jkeaton@iwaynet.net)
There's a lot to think about in your article. How do you measure the worth of intangibles or intellectual property. I've run in to this before. I was stationed in Tokyo with the Air Force in the 1980's and got caught up in negociations with the Government of Japan (GOJ). One of my acquaintances was an economist and over dinner one evening pointed out that about 25% of the trade with the US wasn't covered in the balance of trade statistics.

For example: The Japanese air force bought US designs for aircraft from US companies and paid licensing and royalities on each unit built. Because the planes were built in Japan by domestic companies but to American blueprints, no trade by law had occurred. The fees, royalities, and profits flowed out of Japan to the US but since nothing tangible was exchanged, no credit was given. Further, Japan contributed up to a third of their defense budget to direct support of the US military establishment in Japan. Again for no credit.

A tough problem. Let know when you figure it out.

(posted 8750 days ago)

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