Table of Contents

Japanese Investment in the World Economy

Japanese Investment in the World Economy

A Study of Strategic Themes in the Internationalisation of Japanese Industry

New Horizons in International Business series

Roger Farrell

This book examines Japanese Foreign Direct Investment (FDI) in the world economy over more than five decades. It provides a unique focus on the internationalisation experience of selected industries, such as forestry, textiles, electronics, motor vehicles, steel and services as well as case studies of individual firms. Japanese Investment in the World Economy is distinctive in that it examines overseas investment by firms in the primary, manufacturing and services sectors over the period in which the Japanese economy became the second largest in the world.

Foreword by Peter Drysdale

Roger Farrell

Subjects: asian studies, asian business, asian economics, business and management, asia business, international business, economics and finance, asian economics

Extract

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...