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For a long time, the company dominated, its home market, of course, but also foreign markets like Japan. But in 1934, the Fuji Photo Company (Fujifilm) was created and a duopolistic competition began between the two companies in Japan and the USA. In 1995, Kodak complained against Japan, alledging that Fujifilm and Japan s Ministry of International Trade and Industry (MITI) conspired to exclude it from Japan s distribution outlets. But, two and a half year later, the WTO ruled in favor of Fujifilm and MITI. The aim of this paper is to explain the competition between Fujifilm and Kodak with the product life cycle, game theory and the exchange of hostage hypothesis of international trade and investment

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