This paper first asks whether the working of market forces in Japanese manufacturing industries is unique to them or similar to US counterparts. It is found that autoregressive profit equations for 376 Japanese firms over 1964-82 are on average similar to those for 413 US firms over 1964-80. The paper next asks whether the inter-industry pattern of profit adjustments in Japan is related to industry traits in a manner analogous to the US. In this case specific national differences between the two countries in the effects of imports, industry growth, and capital intensity on the profit adjustment process are found.