A Study of Strategic Themes in the Internationalisation of Japanese Industry
New Horizons in International Business series
Chapter 22: Transport and Communication Services
INTRODUCTION The Japanese transport and communications sector includes road, rail and air transport as well as telecommunications services, shipping and carrier and logistics providers. Firms in the sector typically have their main business operations in the regulated Japanese domestic market, but foreign direct investment by the sector is considerable, partly due to the internationalisation strategy of telecommunications provider NTT DoCoMo. Another factor has been overseas registration of vessels by the Japanese shipping industry under ‘ﬂags of convenience’ in tax havens such as Liberia and Panama. In the early twentieth century, Japanese investment in railway infrastructure in its colonial territories was one of the largest components of its foreign direct investment. This infrastructure was considered essential to facilitate trade and commerce with Korea, Taiwan and the Manchuku territory in China and was subsidised by the national government of Japan. The largest railway investment was in the South Manchurian Railway Company, created in 1906, which was partly owned by the Japanese government and had signiﬁcant political, economic and military importance. Overall, railway investment accounted for over half of total Japanese investment ﬂows into China in the pre-war period (Remer, 1968). By the 1930s, the South Manchurian Railway had expanded to cover over one thousand kilometres of railway networks which linked coastal ports to the hinterland, connecting Shenyang, Dandong, Dalian Anshan and Fushun. In this period, the South Manchurian Railway Company was the largest economic enterprise in Manchuria. It was responsible for the construction of transport infrastructure such as harbour improvements, as...
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