Maverick capitalist Boone Pickens has denounced them as "government-sponsored cartels." Chrysler's Lee lacocca has suggested forming "our own little keiretsu system" in the United States. But whether you regard Japan's mammoth corporate alliances as a menace to trade or a model for change, you probably don't understand how the keiretsu really operate. Here, at last, is the book that will open your eyes.

"Our hard-nosed business leaders look like Dorothy wandering through Oz when it comes to dealing with Japan," observes David Russell, an American business journalist based in Tokyo since 1982. In these pages, he and Japanese counterpart Kenichi Miyashita reveal the inner workings of the keiretsu.

Their unbiased, readable investigation delivers a wealth of information about the system as a whole, its individual members, and the intricate web of relationships that links banks, manufacturers, suppliers, distributors, and the Japanese government.

You'll gain insight into features that are common to most keiretsu, such as the "main bank," stable shareholding, and seconded directors. You'll also examine concepts that have no American parallel, such as the general trading company. And you'll hear from Japanese subcontractors themselves about their experiences serving the keiretsu - an eye-opening look at life inside the pyramid. You'll learn all about the types of keiretsu and how they operate:.

Horizontal keiretsu - the bank-centered Big Six: the Mitsui, Mitsubishi, Sumitomo, Fuyo, Sanwa, and Dai-Ichi Kangyo Bank Groups. Vertical keiretsu - the producers of cars (Toyota, Nissan, Honda) and electronics (Matsushita, Hitachi, Toshiba, Sony), and their "captive" subcontractors. Distribution keiretsu - a subgroup of the vertical keiretsu that controls much of Japanese retailing, deciding what products will appear in stores and showrooms - and at what price.

This is the first book to spell out not only the rules of the keiretsu, but the position of the many players within the interlocking pyramids. After reading it, you'll know why our Japanese competitors - and sometime business partners - act as they do. You'll also be alert to likely changes in keiretsu that may affect business and the economy in the years ahead.

As the debate continues about the reasons for Japan's business success, its stunning dominance of many industries, and the possibilities for its eventual decline, Keiretsu adds major new insights. It is the first detailed map to the hidden world of the Japanese conglomerates