This is the second of three volumes that constitute a brilliant, state-of-the-art analysis of Japan's phenomenal economic rise, its society, and its place in contemporary world affairs. The papers in these volumes are future-orientated - they raise questions about wher Japan is going as it approaches the twenty-first century and offer insights, albeit speculative, about future trends, prospects, and problems. The present volume consists of 14 essays by leading Japanese and American political scientists and economists who analyze the interaction of the Japanese political economy with the increasingly volatile international system. The essays come to grips with several key questions: has the world entered an unstable era of power transition? In what ways is the international system changing? What is Japan's impact on the international system, and in what ways, in turn, is Japan's political economy being shaped by the international environment? Will Japan continue to generate conflicts with other countries as a by-product of its economic performance and its aggressive export and foreign investment orientation?