Foreign Direct Investment in Japan

by Masaru Yoshitomi (Editor), Edward M. Graham (Editor)

Overview

Foreign Direct Investment in Japan is the first serious and comprehensive examination of why the direct participation of foreign firms in the economy of Japan is lower than in any other advanced industrial nation. An internationally acclaimed group of scholars and practitioners addresses this problem and considers what policy actions, if any, the Japanese government can take to increase direct investment.

Foreign exchange controls banned direct investment into Japan until the late 1970s and this is still partially responsible for the low penetration of foreign firms. A fundamental question addressed by the book is whether or not ownership advantages in technology and management know-how possessed by foreign firms are strong enough to overcome the extra costs of doing business in Japan. Such extra costs or locational disadvantages include very high land and labour costs as well as business practices unique to Japan, characterized by the long-term customized transaction relationship among assemblers, component suppliers, distributors and financial institutions and the long-time employment system. Although the Government of Japan desires to invite more foreign firms, this book demonstrates that there are many areas where direct investment has been adversely affected by internal regulation.

Foreign Direct Investment in Japan explores this participation of foreign firms in this economy from the perspectives of economic theory, history, and the practical experiences of non-Japanese firms that have attempted to do business directly in Japan.

Product Details

ISBN-13:	9781858983233
Publisher:	Edward Elgar Publishing
Publication date:	08/20/1996
Series:	New Horizons in International Business series
Pages:	256
Product dimensions:	6.12(w) x 9.25(h) x (d)

About the Author

Edited by Masaru Yoshitomi, Research Institute of Economy, Trade, and Industry, Ministry of Economy, Trade and Industry (METI), Tokyo, Japan and the late Edward M. Graham, formerly Senior Fellow, Institute for International Economics, US

Table of Contents

Contents: Introduction Part I: How Can Theories of Foreign Direct Investment Shed Light on the Small Size of FDI into Japan? Part II: How Do Japan’s Distinctive Business Practices and Trade Structure Affect FDI into Japan? Part III: What are the Actual Experiences of Foreign Multinational Companies in Japan? Conclusions

Editorial Reviews

'This book belongs on the bookshelf of every serious scholar interested in the topic of FDI in Japan.'

From the Publisher

Investment scholars and practitioners query why direct participation of foreign firms in the Japanese economy is lower than in any other industrialized country, and what if any policy steps the Japanese government could take to increase it. They consider the lingering impact of the ban on the practice until the middle 1970s, the high costs of doing business in Japan such as very expensive land and labor, and traditional business practices including long-term transaction relationships with suppliers and customers and the long-term employment system. The seven studies were presented at an October 1994 conference in Philadelphia. Annotation c. by Book News, Inc., Portland, Or.

Booknews