A Study of Strategic Themes in the Internationalisation of Japanese Industry
New Horizons in International Business series
Foreword by Peter Drysdale
Foreword Japanese foreign direct investment has been the subject of a large number of books and articles. The study of Japanese foreign direct investment – a package of capital, technology and management – has focused on the determinants and nature of capital ﬂows by Japanese companies especially in the electronics and automotive industries. Some studies have targeted investment ﬂows by particular manufacturing industries over periods for which data is available. Other studies seek to explain economic and political motivations for Japanese investment across a range of countries and industries and its impact on host countries. This volume on Japanese investment in the world economy by Roger Farrell provides an overview of the internationalisation of various ﬁrms and industries within the Japanese economy over ﬁve decades. While tracing the pattern of investment for industries as diverse as ﬁsheries, lumber and pulp, textiles, chemicals, banking and ﬁnancial services and telecommunications, Dr Farrell draws on a mix of primary sources, case studies and the available literature to describe and explain the internationalisation of the business sector of the world’s second largest economy. Resource and energy supply security and market access have been key rationales for direct investment from Japan. They remain pertinent – as shown by Toshiba’s decision to purchase Westinghouse, a US company with international markets and expertise in nuclear energy and technology, allowing expansion into the Chinese energy market. Investments in Australian coal, iron ore and LNG have been driven by similar considerations. The threat of market closure has been signiﬁcant in encouraging...