Jointly authored by an official of the Detroit Branch of the Federal Reserve Bank of Chicago and a Bloomfield Hills Public Schools System (Michigan) school teacher, this document is designed to support the secondary school social studies curriculum in the study of Japan. The volume examines prevailing U.S. views of Japan, Japan's socio-economic comparison with industrial countries, 10 myths supported by the prevailing U.S. view of Japan, the "Grand Pacific" Alliance, and facts that point out the importance of the U.S.-Japanese bilateral relationship, and the need for the United States to address its major policy questions regarding Japan. The U.S. views of Japan usually extend from either convergent or divergent opinions. Convergent opinions view Japan's behavior based less on unique cultural traits and more on reasonable responses to fundamental needs and similar economic patterns. These views encourage closer cooperations among all nations, and place emphasis on harmonizing relations. Divergent opinions view Japan as wholly unique from the West, and advocate a "U.S. First" position along with protectionist measures, or emphasize government intervention, especially in correcting "unfair" trade. The prevailing view of Japan is divergent and interventionistic in nature. This view leads to many misconceptions about Japan, including the misconception that Japan is an unfair trader. These misperceptions may lead to policies that are detrimental to U.S. growth and development long-term. To foster economic development, the United States must have a long-term strategy that emphasizes savings, investment and human capital development, and the opening of markets. Contains 26 references and 25 graphs that portray various demographic and economic data. (Adjunct ERIC Clearinghouse for U.S.-Japan Studies) (EB)