Factual error: The storyline in Karate Kid 3, based on the happenings and reference points of the first two movies, is supposed to take place roughly about late 1984, or early 1985. However, if you look close at the beginning of the film when Terry Silver drops off John Kreese at the airport, there are several cars that are definitely later 80's models.
The Karate Kid III (1989)
1 factual error - chronological order
Directed by: John G. Avildsen
Starring: Ralph Macchio, Pat Morita, Robyn Lively, Thomas Ian Griffith
Continuity mistake: At the end of the final match, the announcement is made it's the first time in history the defending champion kept his title. Yet in Karate Kid 1 Johnny Lawrence had already won the championship twice and was there for his 3rd time.
Daniel Larusso: I know you don't believe in fighting, but tournament karate isn't exactly fighting.
Mr. Kesuke Miyagi: Not exactly ping-pong, either.
Trivia: When Daniel is persuading Myagi to use his college money to buy a store for selling Bonsai trees, he takes a wad of cash, smells it, and says, "Hmm. Looks like money.smells like money." Ralph Macchio has practically no sense of smell at all, so just for fun he always makes a point to smell something in every movie he does.
Question: I've heard that many people (Ralph Macchio included) do not like this movie. Is there a reason why?
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Answer: Ralph Macchio admitted that he didn't like it as he felt that they were just making the first movie all over again and left out a lot of good stuff.