Japan, by contrast, needed to scrap its antiquated banking system, migrate half of its industrial work force into new-technology exploits and open up its service economy to the withering discipline of foreign competition.

FORBES: Rational Exuberance

Mr. Boot, a senior fellow at the Council on Foreign Relations, is the author, most recently, of "War Made New: Technology, Warfare, and the Course of History, 1500 to Today" (Gotham Books, 2006).

CENTERFORSECURITYPOLICY: Eastern Europe can defend itself

Even though Toyota is officially still committed to support its manufacturing base in Japan, it hopes to ride out the current slump in demand and adverse foreign exchange movement through cost-cutting, hyper-efficiency and collaboration on new technology with parts suppliers.

FORBES: Toyota Burned By Land Of The Rising Yen

Indian consumers, for their part, think it is wonderful: compare the average Delhi taxi (technology circa 1955) with a new, air-conditioned version, courtesy of foreign investors.

ECONOMIST: The trouble with free trade