Japan Assignment example
Finance & Accounting
Pages 4 (1004 words)
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[Student’s name] [Course title] [Supervisor’s name] [Date] Foreign Direct Investment in Japan Why Invest in Japan Because of its rapid and progressive economic development, Japan was considered the ideal country for European companies as a base for their regional operations.


In addition the recent natural disasters like the Tsunami have not only caused substantial direct damage to Japan, but have had an unfavorable effect on the general investment conditions (Padron and Moschetti). These developments coupled with the recent worldwide economic depression have instilled a sense of urgency that foreign direct investment is the only practical measure that could reverse this trend. Towards this, the government is giving incentives for foreign investors which include tax cuts, Comprehensive Special Zones, and reforms in immigration laws to increase foreign investment in Japan. It is also implementing agreements on Free Trade with many counties including the European Union (Padron and Moschetti). Traditionally, the Japanese have not encouraged foreign investment as a matter of fact they have been hostile towards foreigners investing in their country, especially in the manufacturing sector. Any foreign investment currently coming into Japan is in the service industry, especially hi-tech industries such as pharmaceutical and biotechnology. Japan itself has abundant technologies, but is not using these technologies in an appropriate manner (Finance and Investment). The current escalation of the Yen against other global currencies has served to make worse the disparity between Japan’s increasing investment and the dearth of foreign investments into Japan. ...
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