Sample Essay on:
Japanese Foreign Direct Investment

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Essay / Research Paper Abstract

9 pages in length. Among all the currency problems that many regions of the world have witnessed since 1992, 'Southeast Asia's situation is more acute. The region does have one major strength: some of the world's highest growth, savings, and investment rates. But like the Latins, Asians had binged on easy-money policies. Now, the Asians--like the Europeans, Mexicans, and even the Japanese--are paying the price. They are also being forced to become more realistic about steps they need to take to keep their economies healthy in the longer term.' FDI is a route to even out some of bumps, with the added attraction of contributing to growth in better times. Bibliography lists 12 sources.

Page Count:

9 pages (~225 words per page)

File: D0_JapanFDI.DOC

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Unformatted sample text from the term paper:

write that such investment will take place only when net advantages of internalizing markets between activities located in different national economies exist. Throughout their article, they employ such a combination of location factors and internalization factors as a framework for analysis of the pattern, direction and timing of foreign direct investment in Japan. Right from the beginning, Mirza et al. (1996) tell us that while Japan may be a very good country for external investment, it is lousy internally. Alex Philippidis (1996), however, writes completely differently as he describes a newer, stronger Japan, improved both internally and externally by the commencement of free trade fairly recently. He is optimistic that the combination of economic recovery measures plus the election of a new prime minister whom he regards as "committed to deregulation and other reforms" should result in significant growth for Japans economy. Even externally, he is more optimist then Mirza et al (1996); writing that groups like the Japan External Trade Organization and the Japanese Chamber of Commerce and Industry already to assist U.S. companies who are interested in doing -2- business with Japan. But I have noted that Philippidis does not offer nearly as much factual insight into the problem as does Mirza et al. They (Mirza et al., 1996) explain the irony of Japans allegedly poor status for internal trade as follows : By examining the causes of FDI anywhere, they note that several special features emerge. One of these is the hunt for control of raw materials and of basic inputs can not be applied to country such as Japan which has very few resources. Another reason that Mirza et al. (1996) say people choose foreign direct investments due to an attempt to ...

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