The First Globalization and the US-East Asian Locomotive Trade: Focusing on Baldwin Locomotive Work and Frazar & Co. in Japan August 2021 ISS Discussion Paper Series F-196 Naofumi Nakamura ∗ Professor of Business History, Institute of Social Science, the University of Tokyo ∗
[email protected] 0 The First Globalization and the US-East Asian Locomotive Trade: Focusing on Baldwin Locomotive Works and Frazar & Co. in Japan Naofumi Nakamura (Institute of Social Science, University of Tokyo) Abstract In this paper, I have explained the locomotive supply arrangement that supported the rapid development of Japan’s railway industry at the turn of the century while focusing on the independence of Japanese mechanical engineers and the export of American-made locomotives to Japan. As a result, this paper clarified how American locomotive manufacturers dismantled the British monopoly, and penetrated the Japanese market, by paying attention to changes in technological development and business systems on the demand side of the railways, and the role of the international trading companies that mediated the supply of locomotives and rolling stock. In particular, I examined the case study of Frazar & Co. as an agent of Baldwin Locomotive Works by investigating cooperation related to the marketing activities of trading companies and makers in the locomotive industry. The trading companies, such as Frazer & Co., introduced the locomotive manufacturers to the engineers of railway companies, government officers, and academics in Japan, China, and elsewhere. In the emerging market, the search and transaction costs between makers and customers were very expensive. The trading companies in Japan or China had information related to the emerging market and contributed to lowering these costs to increase overall profits.