FDI in Japan
Foreign Direct Investment (FDI) in Japan is still in the small level, even Japanese government has promoted it in recent years and it is said to be rapidly growth because of it. What we can say about the FDI in Japan is one of it is the employment of Japanese affiliates of foreign firms (JAFF). This is affiliates of foreign workers in service and manufacturing sectors in Japan. Besides that, according to the report by MITI (Ministry of International Trade and Industry, which is now acknowledge as the Ministry of Economy, Trade and Industry, (METI) for the inward FDI in Japan, there are about 19 foreign subsidiaries in manufacturing industries. For the subsidiaries on non-manufacturing industries the FDI are included of few industries liketransport and telecommunication, wholesale trade, retail trade, services, and others (agriculture, construction, etc.). As an additional knowledge when the FDI in Japan in the service sector of foreign workers is compared to FDI in United States is one fifth less. Which is 0.59% is Japan’s, ratio to the 2.77% is US’s. While, for the manufacturing sector the ratio of Japan is 0.79 % less than United States with 10.48% (Keiko & Kyoji, 2001).
FDI in Japan started to increase during the second half of the year 1990s. This is due to the rate of FDI outflows is higher than inflows rate in Japan on that time. According to the past sources, FDI outflows from Japan had reached to the 7352 billion yen in the year of 1990s, while the FDI inflows into Japan just only about 262 yen on that time. That is shown the FDI inflows rate was 28 times lower than the outflows rate. Due to the increasing of inflows rate in 1992 and go on growing until the year of 1999 had reduce the gaps of these two rates...
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...ent that is shown naturally in the Japanese economy, and also FDI has given employment opportunities in Japan. Besides that, because of the effective investments it has brought to the existence of business ooportunities to that country. (Naoko et al., 2000). FDI in Japan also had give positive impact since the past year of 1899 to 1931 as mentioned by Mason (1987) in his study on FDI and Japanese Economic Development:
. . . . although the amount of foreign capital invested directly in Japan from 1899 to 1931 was not large, the impact of this investment on Japan was very great indeed. It is clear that foreign direct investment: first, participated in and stimulated a broad range of business endeavor, often employing advanced methods; second, provided valuable knowledge about western technology and management practice; affected the internal economic geography. (p. 13)
“By 1870, 90% of Japan’s international trade was controlled by Westerners living in Japan.” (Woods, SW. (2004). Japan an Illustrated History (1st Edition). Hippocrene books pg. 111).
Jeffrey Kingston. Japan in Transformation, 1952 – 2000. Harlow: Pearson Education Limited, 2001. 230 pp.
Japan has experienced great economy recovery after World War II, thanks to America’s financial assistance and the rapid development of heavy industry. It became the first Asian country that hosted Tokyo Olympics Games in 1964 and Osaka World Expo in 1970, reaching an average annual economic growth of more than 10 percent, becoming the world's second largest economy in 1970s and achieving 30 years of economic growth until the 1980s. Implicated by the appreciation of the Yen and low interest rate policy, however, Japan has underg...
Within a short period of time, Japan had caught up with many Western technologies; having established universities, founded telegraph and railroad lines, as well as a national postal system being created. Shipping and textile industries were a huge success an exports rose.
... be set at fair prices and therefore successful trading. Also, through commercialization, the Japanese were able to expand on their own lives and embellish their lives more.
I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.
...that used latest of technology. They made Japan a major trade area so they could have access to other goods.
WriteWork contributors. "The impact of World War 1 on Japanese development in the early 20th century" WriteWork.com. WriteWork.com, 05 January, 2010. Web. 10 Nov. 2013.
Therefore, this part tries to cover those issues and seeks to answer how people affected rapid growth of post-war Japan.
Export trends have been an important factor during Japan's present economic adjustment period, and the structures of Japanese exports, together with the imports, have been changing substantially in recent years. The changes in the country's export and import structures during the 1990s can be characterized by the following three key developments: (1) the weight of IT-related goods has been rising in both real exports and imports; (2) real imports of consumer goods from East Asia has been increasing; and (3) the US remains Japan's largest trading partner as a single country. Due to these factors, maintaining its comparative advantage became the priority in the current global economy.
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s employment relations model (Wiley, Wilkinson, & Young, 2005). Cognizant of the fact that neither Japan nor China has given up on its external (protectionism or parity) adjustment tools, it is posited that they can nonetheless coexist since both “produce different things and in different ways” and as such avoid the cited perilous US and Mexico competition; but due to globalization, the operating environment portends a convergence or divergence of Industrial Relation (ER) strategies between China and Japan (Lipietz, 1997; Zhu & Warner, 2004).
...high power status, Japan had to have a self-reliant industrial common ground and be able to move all human and material resources (S,195). Through the Shogun Revolution of 1868, the abolition of Feudalism in 1871, the activation of the national army in 1873, and the assembly of parliament in 1889, the political system of Japan became westernized (Q,3). Local Labor and commercial assistance from the United States and Europe allowed Japan’s industry to bloom into a developed, modern, industrial nation (Q,3). As a consequence production surplus, and food shortage followed (Q,3). Because of how much it relied on aid of western powers, Japan’s strategic position became especially weak. In an attempt to break off slightly from the aid of the west Japanese leaders believed that it would be essential for Japan to expand beyond its borders to obtain necessary raw materials.
In the following essay I will try to compare two highly developed economies, Japan and The United Kingdom. I will emphasize the success of their economies and how human capital, advancing technology (innovation), and FDI have contributed to their current success or failure. I will briefly discuss the contemporary history of each country, thoroughly cover their current conditions, and end with expectations for their future.
Japan is one of the greatest countries in the world and it has offered many things as well. The Japanese have given the world a better understanding of their culture and history along with a good look at the future from a technological standpoint. They have developed and created the future for their country that has allowed them to be prosperous and powerful. They once isolated themselves from the rest of the world, but now they share their knowledge with other countries in order to create a better understanding of the world. Through their trade and creative thinking they have become one of the world’s largest and powerful countries and have allowed their economy to flourish and prosper.
A benefit of Japanese having a grantor FDI includes bring competition to Japan were local ones may not already be experiencing it. This could source new management ideas, business policies, and technology; all of which could boost productivity. It was the opportunity to help restructure Japan’s retail sector that would boost productivity, gaining market share, and profiting from the process. This attracted the worlds largest retailer to