Costs of Protecting Jobs: Japanese Rice

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In the heavily regulated, lower-paid Japanese economy, one suspects that these cost ratios could be higher. For example, one estimate in the late 1980s put the cost of California rice CIF (cost, insurance, freight == all costs paid) Tokyo at 1/8 the cost of non-branded Japanese rice of similar species and nutritional quality. (Whether the Japanese consumer would consider them of similar quality is a different question.) On the other hand, after accounting for heavy water subsidies and other farm aid received by California rice producers, it is known that some Japanese farmers achieve similar cost levels.

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