This document summarizes the American Chamber of Commerce in Japan's (ACCJ) policy document on promoting foreign direct investment (FDI) in Japan. It discusses Prime Minister Koizumi's goal of doubling Japan's FDI stock by 2008 to help revive the economy. While there have been some positive steps taken, reactions to increased FDI have been mixed, with some fearing it could reduce jobs. The ACCJ believes FDI benefits Japan's economy, workers, and consumers based on research conducted. It calls for more data and analysis to address critics' concerns.
The document discusses the Indo-Japanese Comprehensive Economic Partnership Agreement (CEPA) between India and Japan. It provides background on bilateral trade relations between the two countries. The key points are:
1) CEPA aims to strengthen economic cooperation and provide better market access for products between India and Japan. It requires commitments beyond existing World Trade Organization agreements.
2) Bilateral trade between India and Japan was historically strong but certain factors like the Cold War limited economic engagement. However, relations have improved in recent decades through initiatives like CEPA.
3) CEPA could more than double bilateral trade from $12 billion to $25 billion by 2014 by reducing trade barriers. However, full implementation faces challenges
The document summarizes discussions from a Japan Growth Finance Forum on increasing risk capital flows to support economic growth. In the keynote speech, the CEO of Innovation Network Corporation of Japan argued that increasing the supply of risk capital from financial institutions is important. He outlined four points needed to boost risk money supply: behavioral changes in financial institutions; diversified investments by pension funds; major corporations providing technology and intellectual property; and effective government entrepreneurship support. The panels discussed the roles and outlook of different financial actors in industry finance and challenges in regional economies. Overall, the forum highlighted the importance of cooperation between industries and financial institutions to develop new financing and investment vehicles to support business growth.
Japan has a population of over 127 million people and its capital and largest city is Tokyo. The official currency is the Japanese yen. Japan has a very literate population and uses three different alphabets in its writing system. It has a very well developed transportation network including railways and expressways. Japan has a highly developed economy and is focused on innovation and research and development. It aims to attract foreign investment through incentives and developing business friendly regulations. The energy sector is an area of focus as Japan imports fossil fuels and aims to increase renewable energy.
This document summarizes grassroots economic development policies and initiatives in Thailand. It outlines the evolution of Thailand's national economic and social development plans from an initial focus on economic growth and infrastructure to more recent people-centered and participatory approaches. Key poverty eradication strategies discussed include human resource development, strategic interventions to generate income, and coordinating with local chambers of commerce. Specific government programs described are village revolving funds, universal health insurance, free schooling, a one village one product initiative, fix-it centers, various social security systems for the elderly, and a housing security project to address housing problems of the urban poor.
This chapter tests for structural symmetry among SADC countries towards monetary integration using the Triples Test methodology. The results show that 7 out of 14 SADC countries fail to achieve structural symmetry based on their real GDP data from 1970 to 2010, implying divergence. These countries are Madagascar, Malawi, Mozambique, South Africa, Tanzania, Zambia, and the DRC. The chapter also examines bilateral co-movement between SADC countries using relative intensity of co-movement measures, finding higher co-movement within SADC than with major trade partners. This provides mixed evidence regarding symmetry for monetary integration in SADC.
The document summarizes a seminar held by the Board of Investment of Thailand to explain new investment promotion strategies and policies. The Prime Minister and Deputy Prime Minister spoke at the event. The Prime Minister outlined government efforts to promote sustainable growth, including improving infrastructure, special economic zones, border trade, and supporting SMEs. The Deputy Prime Minister discussed Thailand transitioning from a production to trading economy and revisions to tax codes to promote headquarters investments. The Acting Secretary General of BOI then presented details on the new investment promotion criteria and policies.
The document discusses opportunities in Thailand's machinery industry. It notes that Thailand imports a large amount of machinery each year but has opportunities to supply more sophisticated machinery domestically to meet growing demand. The machinery industry employs many workers and consists of thousands of enterprises. Rapid development in Southeast Asia is driving export growth of Thai machinery. Food processing, automotive, electronics, and other industries are fueling demand for machine tools, packaging equipment, and other machinery. The BOI aims to promote investment that can help Thailand produce and export more advanced machinery to capitalize on these opportunities.
Chinese economic activities and interests in developing countries have rapidly increased since China's economic reforms in 1978. Chinese firms are now actively investing in Latin America and Africa, challenging American and European companies. This paper examines China's role and interests in developing countries, why it prefers to invest in these regions, and the effects of Chinese economic activities in Latin America and Africa. It finds that China pursues its national interests in developing countries, such as natural resources, to fuel its own economy. While Chinese investment has benefits such as infrastructure development, it is also motivated by accessing resources rather than political solidarity. Chinese firms have also been more successful than Western firms in some developing countries due to their non-interventionist approach and unconditional economic operations.
The document discusses the Indo-Japanese Comprehensive Economic Partnership Agreement (CEPA) between India and Japan. It provides background on bilateral trade relations between the two countries. The key points are:
1) CEPA aims to strengthen economic cooperation and provide better market access for products between India and Japan. It requires commitments beyond existing World Trade Organization agreements.
2) Bilateral trade between India and Japan was historically strong but certain factors like the Cold War limited economic engagement. However, relations have improved in recent decades through initiatives like CEPA.
3) CEPA could more than double bilateral trade from $12 billion to $25 billion by 2014 by reducing trade barriers. However, full implementation faces challenges
The document summarizes discussions from a Japan Growth Finance Forum on increasing risk capital flows to support economic growth. In the keynote speech, the CEO of Innovation Network Corporation of Japan argued that increasing the supply of risk capital from financial institutions is important. He outlined four points needed to boost risk money supply: behavioral changes in financial institutions; diversified investments by pension funds; major corporations providing technology and intellectual property; and effective government entrepreneurship support. The panels discussed the roles and outlook of different financial actors in industry finance and challenges in regional economies. Overall, the forum highlighted the importance of cooperation between industries and financial institutions to develop new financing and investment vehicles to support business growth.
Japan has a population of over 127 million people and its capital and largest city is Tokyo. The official currency is the Japanese yen. Japan has a very literate population and uses three different alphabets in its writing system. It has a very well developed transportation network including railways and expressways. Japan has a highly developed economy and is focused on innovation and research and development. It aims to attract foreign investment through incentives and developing business friendly regulations. The energy sector is an area of focus as Japan imports fossil fuels and aims to increase renewable energy.
This document summarizes grassroots economic development policies and initiatives in Thailand. It outlines the evolution of Thailand's national economic and social development plans from an initial focus on economic growth and infrastructure to more recent people-centered and participatory approaches. Key poverty eradication strategies discussed include human resource development, strategic interventions to generate income, and coordinating with local chambers of commerce. Specific government programs described are village revolving funds, universal health insurance, free schooling, a one village one product initiative, fix-it centers, various social security systems for the elderly, and a housing security project to address housing problems of the urban poor.
This chapter tests for structural symmetry among SADC countries towards monetary integration using the Triples Test methodology. The results show that 7 out of 14 SADC countries fail to achieve structural symmetry based on their real GDP data from 1970 to 2010, implying divergence. These countries are Madagascar, Malawi, Mozambique, South Africa, Tanzania, Zambia, and the DRC. The chapter also examines bilateral co-movement between SADC countries using relative intensity of co-movement measures, finding higher co-movement within SADC than with major trade partners. This provides mixed evidence regarding symmetry for monetary integration in SADC.
The document summarizes a seminar held by the Board of Investment of Thailand to explain new investment promotion strategies and policies. The Prime Minister and Deputy Prime Minister spoke at the event. The Prime Minister outlined government efforts to promote sustainable growth, including improving infrastructure, special economic zones, border trade, and supporting SMEs. The Deputy Prime Minister discussed Thailand transitioning from a production to trading economy and revisions to tax codes to promote headquarters investments. The Acting Secretary General of BOI then presented details on the new investment promotion criteria and policies.
The document discusses opportunities in Thailand's machinery industry. It notes that Thailand imports a large amount of machinery each year but has opportunities to supply more sophisticated machinery domestically to meet growing demand. The machinery industry employs many workers and consists of thousands of enterprises. Rapid development in Southeast Asia is driving export growth of Thai machinery. Food processing, automotive, electronics, and other industries are fueling demand for machine tools, packaging equipment, and other machinery. The BOI aims to promote investment that can help Thailand produce and export more advanced machinery to capitalize on these opportunities.
Chinese economic activities and interests in developing countries have rapidly increased since China's economic reforms in 1978. Chinese firms are now actively investing in Latin America and Africa, challenging American and European companies. This paper examines China's role and interests in developing countries, why it prefers to invest in these regions, and the effects of Chinese economic activities in Latin America and Africa. It finds that China pursues its national interests in developing countries, such as natural resources, to fuel its own economy. While Chinese investment has benefits such as infrastructure development, it is also motivated by accessing resources rather than political solidarity. Chinese firms have also been more successful than Western firms in some developing countries due to their non-interventionist approach and unconditional economic operations.
Economic Development in Thailand in detailed point of view.Sanath Dasanayaka
In this report, it is expected to examine the economic and business strategies used by Thailand in the past years in detail and clearly. As well as, here, it is expected to suggest the business strategies used by Thailand for Sri Lankan application.
The monthly newsletter provides an analysis of the one year performance of the Narendra Modi led government in India. While growth has remained below average and reforms have faced resistance, the document argues it is too early to judge the government and that some productivity improvements have been achieved. It notes parliament has been more productive than in recent years and the government has taken steps to improve infrastructure, manufacturing, and service delivery. The document concludes that macroeconomic transitions take time and investors should have a long-term view to benefit from reforms.
The report summarizes the total economic relationship between the US and Indonesia in 2014 as $90.1 billion ("the Big Number"). This figure represents 10.1% of Indonesia's GDP that year and has grown at an average annual rate of 8% from 2010-2015, outpacing Indonesia's GDP growth of 5.5% over the same period. The Big Number includes five components: domestic sales ($34.1B), bilateral trade ($27.6B), FDI ($14.7B), finance ($11.8B), and government revenue ($1.8B). Domestic sales make up the largest share, followed by trade, FDI, finance, and revenue.
This document provides an overview of topics related to international business, including:
- The political economy and legal systems of different countries and how they impact business. Three main legal systems are described: common law, civil law, and theocratic law.
- Factors of economic development according to economist Amartya Sen, including life expectancy, education, and income.
- Transition economies that have moved from centrally planned to market-based systems.
- A case study on Japan's economic stagnation since the 1980s and questions for discussion around the causes and potential solutions.
- Announcements about group allocations and topics to be covered in future weeks of an international business course.
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
The October edition of the Newsletter outlines the Indian priorities and the road ahead for the G20; provides brief information on the happenings at the World Bank, Asian Development Bank (ADB), International Finance Corporation (IFC), World Trade Organization (WTO), International Trade Centre (ITC) and highlights the key remarks made by the Minister of State for External Affairs at the 8th IBSA Trilateral Ministerial Commission Meeting.
The document is an annual report from the Business and Industry Advisory Committee to the OECD (BIAC) summarizing their activities and priorities in 2014. It discusses BIAC's engagement on several issues including: promoting structural economic reforms and balanced policies to support growth; ensuring a predictable international tax environment; strengthening job creation and skills; and fostering open markets and investment. A key focus was providing business input to the OECD's work on "Base Erosion and Profit Shifting" to develop international tax standards and restore confidence in cross-border trade and investment.
This study empirically evaluates the performance of Nigeria's Small and Medium Enterprises Equity Investment Scheme (SMEEIS) using data from Benue and Nassarawa States from 1993 to 2008. The study found that there was no significant difference in bank loans to SMEs before and after the introduction of SMEEIS, and that the conditions for accessing SMEEIS funds were beyond the reach of most SMEs in Nigeria. This indicates that SMEEIS has not significantly impacted SME growth in Nigeria. The study recommends establishing a credit guarantee scheme with risk-sharing between the government and banks to encourage greater bank lending to SMEs and support their growth, development, and Nigeria's national economic
THE 2007 EUROPEAN APPLIED BUSINESS RESEARCH CONFERENCE.pdfJAMAL ABDULLAH
External debt can positively or negatively impact economic growth. This study analyzes Malaysia's external debt and its effects on economic growth from 1970 to 2005. The results show that in the long run, a 1% increase in total external debt leads to a 1.29% increase in economic growth. Specifically, project loans positively impact growth, while market loans show no significant effect. In the short run, total external debt and project loans also positively impact economic growth. The study uses a VAR model to analyze the relationship between external debt, GDP, capital, labor, and human capital in Malaysia.
China has the second largest economy globally and is projected to surpass the US by 2020. It has experienced strong and consistent GDP growth for decades, averaging around 7-9% annually, though growth has slowed recently. China has a one-party communist government and is transitioning its economy from manufacturing and exports to more domestic consumption and innovation. It faces challenges from a slowing housing market and global economic uncertainties.
Domestic debt and the growth of nigerian economyAlexander Decker
Domestic debt in Nigeria has risen significantly between 1994 and 2008, averaging 114.98% of bank deposits which exceeds the recommended threshold of 35% and can crowd out private investment. The study found evidence that high levels of domestic debt negatively impact economic growth. The government should reduce the debt-bank deposit ratio to below 35% and increase tax revenue to finance projects in order to promote private sector growth and development.
Does Bank Credit Have Any Impact on Nigeria’s Domestic Investment?iosrjce
There is an extensive literature on the role of the bank lending and credit facilities in Nigeria but
most of these literature concentrate on its impact on the gross domestic product. This study focuses on the
impact of Nigeria’s banking sector on domestic investment from 1980 to 2012 bearing in mind that funding is
one of the major challenges of domestic entrepreneurs in Nigeria. A domestic investment model was adopted
and the unit root test was first applied to the data set. All the data are stationary and the ordinary least square
method was used to identify the impact of capital market activities on domestic investment in Nigeria using the
cointegration technique. Findings reveal that bank credit negatively though significantly impacted on domestic
investment in the long run while its short run impact is both positive and significant. This is an indication that
financial intermediation (captured by bank credit to private sector) is a strong driver of domestic investment in
Nigeria only in the short run. The study thus recommends amongst others, the strengthening of Nigeria’s
banking system with more funds and supervisions as well as the encouragement of both foreign and domestic
investments through government’s creation of a more conducive political and economic climate.
The document discusses several issues weighing down the Indian economy, including financial discipline, the financial sector, resource utilization, corruption, overambitious government schemes, the need for sustained and inclusive growth, agricultural development, poverty eradication, and unemployment. It analyzes factors like the fiscal deficit, inflation, government spending, and financial inclusion that are slowing economic growth. It argues for reforms like increasing foreign investment, improving tax systems, utilizing natural resources, strengthening anti-corruption laws, and focusing on long-term and sustainable development.
India and Singapore signed a Comprehensive Economic Cooperation Agreement (CECA) in 2005 to enhance bilateral trade and investment. CECA established a free trade area for goods and services, liberalized investment rules, and included provisions for cooperation in sectors like customs, education, and e-commerce. For India, CECA aimed to increase foreign direct investment, gain access to Singapore's technical expertise, and allow the temporary movement of professionals. Key industries that benefitted included financial services, telecommunications, tourism, and education. Singapore saw opportunities in India's large and fast-growing market as well as access to skilled Indian labor. Periodic reviews have focused on further deepening economic integration between the two countries.
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
I am an academic writer & freelancer! I can work on Research Paper, Thesis Writing, Academic Research, Research Project, Proposals, Assignments, Business Plans, and Case study research.
Expertise:
Management Sciences, Business Management, Marketing, HRM, Banking, Business Marketing, Corporate Finance, International Business Management
For Order Online:
Whatsapp: +923452502478
Portfolio Link: https://blueprismacademia.wordpress.com/
Email: arguni.hasnain@gmail.com
Follow Me:
Linkedin: arguni_hasnain
Instagram : arguni.hasnain
Facebook: arguni.hasnain
Research report impact of multiple taxationJawad Ahmed
Small and medium scale refer as wholesaler and retailers. The study is for finding that taxation may impact or not on these scales. Statement of hypothesis is also stated in this at 2.1 you can see.
Modeling the effect of capital market empirical evidence from nigeria.Alexander Decker
This study examines the relationship between capital market activities and economic growth in Nigeria from 2001 to 2010. The capital market variables of annual market capitalization and total volume of transactions were analyzed in relation to gross domestic product as a proxy for economic development. The findings revealed a positive but not statistically significant relationship between capital market activities and GDP. It is recommended that building investor confidence through transparency, fair trading, political stability, and adequate publicity of the capital market could make the impact of the capital market on the economy more significant.
The impact of interest rates on the development of an emerging market empiric...Alexander Decker
This document summarizes a journal article about the impact of interest rates on the development of emerging markets, using Nigeria as an empirical case study. It acknowledges people who assisted with the research. The abstract indicates that interest rates are difficult to forecast and impact borrowing costs for businesses. While higher rates could encourage savings in the long-run, current high rates in Nigeria of 12% are negatively impacting growth. The literature review discusses how inflation can stimulate or deter human capital formation and how interest rates influence savings, investment, and financial intermediation. It recommends Nigeria adopt pragmatic policies to reduce lending rates to single digits to boost the economy.
An examination of the effect of funds provided by cooperative thrift and cred...Alexander Decker
This study examined how funding from Cooperative Thrift and Credit Societies (CTCS) has affected the
performance of small-scale businesses in Nigeria. The results showed that CTCS funding had a positive impact on
key performance indicators of small businesses including current liabilities, fixed assets, and current assets. The
study concluded that membership in CTCS by entrepreneurs positively impacted the performance of small-scale
businesses in Nigeria.
1) Japanese companies are extending their supply chains throughout Asia to diversify risk by sourcing parts from multiple local suppliers instead of just Japanese ones. This was prompted by natural disasters disrupting supply chains.
2) Japanese companies are also investing more in other Asian countries by establishing local manufacturing plants either on their own or through partnerships with local companies. This allows them to sell locally while transferring technology.
3) To further mitigate supply chain risks, Japanese companies are using financial tools like trade receivables finance and letters of credit to improve cash flow and accelerate payments. They aim to have flexible supply chains that allow quickly switching suppliers or locations.
With a view to focus on CII’s policy advocacy work in the International context, CII has started a new publication called as “ Global Watch”. The CII “Global Watch” focusses on global economic issues and highlights India’s linkages with other countries.
Economic Development in Thailand in detailed point of view.Sanath Dasanayaka
In this report, it is expected to examine the economic and business strategies used by Thailand in the past years in detail and clearly. As well as, here, it is expected to suggest the business strategies used by Thailand for Sri Lankan application.
The monthly newsletter provides an analysis of the one year performance of the Narendra Modi led government in India. While growth has remained below average and reforms have faced resistance, the document argues it is too early to judge the government and that some productivity improvements have been achieved. It notes parliament has been more productive than in recent years and the government has taken steps to improve infrastructure, manufacturing, and service delivery. The document concludes that macroeconomic transitions take time and investors should have a long-term view to benefit from reforms.
The report summarizes the total economic relationship between the US and Indonesia in 2014 as $90.1 billion ("the Big Number"). This figure represents 10.1% of Indonesia's GDP that year and has grown at an average annual rate of 8% from 2010-2015, outpacing Indonesia's GDP growth of 5.5% over the same period. The Big Number includes five components: domestic sales ($34.1B), bilateral trade ($27.6B), FDI ($14.7B), finance ($11.8B), and government revenue ($1.8B). Domestic sales make up the largest share, followed by trade, FDI, finance, and revenue.
This document provides an overview of topics related to international business, including:
- The political economy and legal systems of different countries and how they impact business. Three main legal systems are described: common law, civil law, and theocratic law.
- Factors of economic development according to economist Amartya Sen, including life expectancy, education, and income.
- Transition economies that have moved from centrally planned to market-based systems.
- A case study on Japan's economic stagnation since the 1980s and questions for discussion around the causes and potential solutions.
- Announcements about group allocations and topics to be covered in future weeks of an international business course.
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
The October edition of the Newsletter outlines the Indian priorities and the road ahead for the G20; provides brief information on the happenings at the World Bank, Asian Development Bank (ADB), International Finance Corporation (IFC), World Trade Organization (WTO), International Trade Centre (ITC) and highlights the key remarks made by the Minister of State for External Affairs at the 8th IBSA Trilateral Ministerial Commission Meeting.
The document is an annual report from the Business and Industry Advisory Committee to the OECD (BIAC) summarizing their activities and priorities in 2014. It discusses BIAC's engagement on several issues including: promoting structural economic reforms and balanced policies to support growth; ensuring a predictable international tax environment; strengthening job creation and skills; and fostering open markets and investment. A key focus was providing business input to the OECD's work on "Base Erosion and Profit Shifting" to develop international tax standards and restore confidence in cross-border trade and investment.
This study empirically evaluates the performance of Nigeria's Small and Medium Enterprises Equity Investment Scheme (SMEEIS) using data from Benue and Nassarawa States from 1993 to 2008. The study found that there was no significant difference in bank loans to SMEs before and after the introduction of SMEEIS, and that the conditions for accessing SMEEIS funds were beyond the reach of most SMEs in Nigeria. This indicates that SMEEIS has not significantly impacted SME growth in Nigeria. The study recommends establishing a credit guarantee scheme with risk-sharing between the government and banks to encourage greater bank lending to SMEs and support their growth, development, and Nigeria's national economic
THE 2007 EUROPEAN APPLIED BUSINESS RESEARCH CONFERENCE.pdfJAMAL ABDULLAH
External debt can positively or negatively impact economic growth. This study analyzes Malaysia's external debt and its effects on economic growth from 1970 to 2005. The results show that in the long run, a 1% increase in total external debt leads to a 1.29% increase in economic growth. Specifically, project loans positively impact growth, while market loans show no significant effect. In the short run, total external debt and project loans also positively impact economic growth. The study uses a VAR model to analyze the relationship between external debt, GDP, capital, labor, and human capital in Malaysia.
China has the second largest economy globally and is projected to surpass the US by 2020. It has experienced strong and consistent GDP growth for decades, averaging around 7-9% annually, though growth has slowed recently. China has a one-party communist government and is transitioning its economy from manufacturing and exports to more domestic consumption and innovation. It faces challenges from a slowing housing market and global economic uncertainties.
Domestic debt and the growth of nigerian economyAlexander Decker
Domestic debt in Nigeria has risen significantly between 1994 and 2008, averaging 114.98% of bank deposits which exceeds the recommended threshold of 35% and can crowd out private investment. The study found evidence that high levels of domestic debt negatively impact economic growth. The government should reduce the debt-bank deposit ratio to below 35% and increase tax revenue to finance projects in order to promote private sector growth and development.
Does Bank Credit Have Any Impact on Nigeria’s Domestic Investment?iosrjce
There is an extensive literature on the role of the bank lending and credit facilities in Nigeria but
most of these literature concentrate on its impact on the gross domestic product. This study focuses on the
impact of Nigeria’s banking sector on domestic investment from 1980 to 2012 bearing in mind that funding is
one of the major challenges of domestic entrepreneurs in Nigeria. A domestic investment model was adopted
and the unit root test was first applied to the data set. All the data are stationary and the ordinary least square
method was used to identify the impact of capital market activities on domestic investment in Nigeria using the
cointegration technique. Findings reveal that bank credit negatively though significantly impacted on domestic
investment in the long run while its short run impact is both positive and significant. This is an indication that
financial intermediation (captured by bank credit to private sector) is a strong driver of domestic investment in
Nigeria only in the short run. The study thus recommends amongst others, the strengthening of Nigeria’s
banking system with more funds and supervisions as well as the encouragement of both foreign and domestic
investments through government’s creation of a more conducive political and economic climate.
The document discusses several issues weighing down the Indian economy, including financial discipline, the financial sector, resource utilization, corruption, overambitious government schemes, the need for sustained and inclusive growth, agricultural development, poverty eradication, and unemployment. It analyzes factors like the fiscal deficit, inflation, government spending, and financial inclusion that are slowing economic growth. It argues for reforms like increasing foreign investment, improving tax systems, utilizing natural resources, strengthening anti-corruption laws, and focusing on long-term and sustainable development.
India and Singapore signed a Comprehensive Economic Cooperation Agreement (CECA) in 2005 to enhance bilateral trade and investment. CECA established a free trade area for goods and services, liberalized investment rules, and included provisions for cooperation in sectors like customs, education, and e-commerce. For India, CECA aimed to increase foreign direct investment, gain access to Singapore's technical expertise, and allow the temporary movement of professionals. Key industries that benefitted included financial services, telecommunications, tourism, and education. Singapore saw opportunities in India's large and fast-growing market as well as access to skilled Indian labor. Periodic reviews have focused on further deepening economic integration between the two countries.
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
I am an academic writer & freelancer! I can work on Research Paper, Thesis Writing, Academic Research, Research Project, Proposals, Assignments, Business Plans, and Case study research.
Expertise:
Management Sciences, Business Management, Marketing, HRM, Banking, Business Marketing, Corporate Finance, International Business Management
For Order Online:
Whatsapp: +923452502478
Portfolio Link: https://blueprismacademia.wordpress.com/
Email: arguni.hasnain@gmail.com
Follow Me:
Linkedin: arguni_hasnain
Instagram : arguni.hasnain
Facebook: arguni.hasnain
Research report impact of multiple taxationJawad Ahmed
Small and medium scale refer as wholesaler and retailers. The study is for finding that taxation may impact or not on these scales. Statement of hypothesis is also stated in this at 2.1 you can see.
Modeling the effect of capital market empirical evidence from nigeria.Alexander Decker
This study examines the relationship between capital market activities and economic growth in Nigeria from 2001 to 2010. The capital market variables of annual market capitalization and total volume of transactions were analyzed in relation to gross domestic product as a proxy for economic development. The findings revealed a positive but not statistically significant relationship between capital market activities and GDP. It is recommended that building investor confidence through transparency, fair trading, political stability, and adequate publicity of the capital market could make the impact of the capital market on the economy more significant.
The impact of interest rates on the development of an emerging market empiric...Alexander Decker
This document summarizes a journal article about the impact of interest rates on the development of emerging markets, using Nigeria as an empirical case study. It acknowledges people who assisted with the research. The abstract indicates that interest rates are difficult to forecast and impact borrowing costs for businesses. While higher rates could encourage savings in the long-run, current high rates in Nigeria of 12% are negatively impacting growth. The literature review discusses how inflation can stimulate or deter human capital formation and how interest rates influence savings, investment, and financial intermediation. It recommends Nigeria adopt pragmatic policies to reduce lending rates to single digits to boost the economy.
An examination of the effect of funds provided by cooperative thrift and cred...Alexander Decker
This study examined how funding from Cooperative Thrift and Credit Societies (CTCS) has affected the
performance of small-scale businesses in Nigeria. The results showed that CTCS funding had a positive impact on
key performance indicators of small businesses including current liabilities, fixed assets, and current assets. The
study concluded that membership in CTCS by entrepreneurs positively impacted the performance of small-scale
businesses in Nigeria.
1) Japanese companies are extending their supply chains throughout Asia to diversify risk by sourcing parts from multiple local suppliers instead of just Japanese ones. This was prompted by natural disasters disrupting supply chains.
2) Japanese companies are also investing more in other Asian countries by establishing local manufacturing plants either on their own or through partnerships with local companies. This allows them to sell locally while transferring technology.
3) To further mitigate supply chain risks, Japanese companies are using financial tools like trade receivables finance and letters of credit to improve cash flow and accelerate payments. They aim to have flexible supply chains that allow quickly switching suppliers or locations.
With a view to focus on CII’s policy advocacy work in the International context, CII has started a new publication called as “ Global Watch”. The CII “Global Watch” focusses on global economic issues and highlights India’s linkages with other countries.
Japan's startup ecosystem has grown remarkably over the past decade, characterized by increased funding and exits. Total funds raised by VCs in Japan have increased 10-fold since 2013 to a record high of over 600 billion yen in 2022. The number of unicorns has grown to 78 and startup funding has increased 10-fold to over 877 billion yen in 2022. Corporations are increasingly collaborating with startups through CVCs and business partnerships. The government aims to further accelerate growth through its new 5-year startup plan, with goals of increasing total startup funding to over 10 trillion yen and producing 100 unicorns.
Japan's startup ecosystem has grown remarkably over the past decade, characterized by increased funding and exits. Total funds raised by VCs in Japan have increased 10-fold since 2013 to over 600 billion yen in 2022. Japanese VCs have also outperformed their counterparts in North America and Europe in returns. The number of startups and funding have also increased substantially. Additionally, corporations are increasingly collaborating with startups through CVCs and partnerships, while government policies like the TSE Growth Market and new startup development plan aim to further accelerate the ecosystem. This growth has been supported by rising entrepreneurial talent and Japan's world-leading scientific capabilities.
Japan hosted the annual G7 Summit in late May, taking over the presidency of the group during a period of global economic uncertainty. At the summit, Japanese Prime Minister Shinzo Abe promoted his "Abenomics" economic policies and called on other G7 leaders to coordinate similar stimulus approaches. Japan also emphasized its commitment to expanding free trade, investing in infrastructure, and tackling issues like climate change, health, terrorism, and women's rights. The summit highlighted Japan's desire to strengthen its international leadership role through promoting cooperative solutions to major global challenges.
This document provides an overview of investment opportunities and the business environment in Japan. It discusses five reasons to invest in Japan, including Japan's economic re-emergence, sophisticated market, status as an innovation hub, business-friendly infrastructure, and comfortable living conditions. It also summarizes top small business investment opportunities such as pharmaceuticals, IT, energy, retail, manufacturing, agriculture, and real estate. The document outlines government incentives for foreign direct investment and protections for foreign investors. It examines Japan's foreign investment figures, top investing countries and sectors, and procedures for foreign investment.
The document discusses factors to consider for multinational companies investing in China. It outlines China's encouragement of foreign direct investment and the attributes of its market, currency, and trade environment. The essay also examines political, employment, cultural, and social implications for long-term investment projects in China. Key factors discussed include import/export restrictions, labor laws, currency value manipulation, hierarchy-based business culture, and differences between national and local regulations.
1) Japan has the third largest economy but faces challenges from an aging population and shrinking workforce. It has a high debt-to-GDP ratio and has relied on policies like lifetime employment and low interest rates.
2) The Financial Services Agency is Japan's primary financial regulator and is responsible for supervision of banks, insurance companies, and other financial institutions.
3) In addition to private banks, Japan has government financial institutions that promote specialized sectors. The postal savings system collects large deposits through post offices.
The key demographic changes happening in Japan are population decrease and aging. There are two main reasons for this:
1. Low fertility rates. As fewer babies are being born each year, this directly leads to a decreasing population over time as well as population aging since there are fewer young people being added.
2. Increased life expectancy. While longer lifespans are a positive development, it also means that more of the population is surviving into old age, leading to population aging.
Together, low fertility rates and increased longevity have reduced Japan's population growth and caused its population to rapidly age over the past few decades. With very little immigration to offset these trends, Japan is experiencing both a shrinking and graying population. Addressing low
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2018H1 Japanese Venture Capital LandscapeShun Nagao
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2. 2
Each year the American Chamber of Commerce in Japan (ACCJ) publishes at
least one major policy document that we hope will make a positive contribution
to improving Japan’s business climate for the benefit not only of our members
but for all businesses in Japan.
This year the Chamber decided to focus on foreign direct investment into Japan
in response to Prime Minister Junichiro Koizumi’s January speech to the Diet, in
which he announced the government’s goal of doubling FDI in five years. A task
force under the chairmanship of Nicholas Benes and Vice Chairs David Shuler,
Thierry Porté, and Kumi Sato engaged the services of Japan’s most authoritative
experts on FDI, Professor Kyoji Fukao of Hitotsubashi University and Tomofumi
Amano of Toyo University, to conduct objective analysis and write a report
illuminating the facts concerning FDI in Japan—including the kinds of benefits
that it brings—and suggesting policy implications. Their extensive and excellent
report was issued in Japanese on October 29, 2003, under the title ”Foreign
Direct Investment and the Japanese Economy.”
In addition, the task force prepared the attached companion policy document,
”From Goals to Reality: FDI Policy in Japan.” This document builds on the facts
and empirical analysis presented by Professors Fukao and Amano to dispel a
number of myths and fears about FDI in Japan and offers a number of ACCJ
policy recommendations for achieving the government’s goal of doubling FDI
into Japan by 2008.
Finally, seven companies, including several ACCJ member companies, agreed to
serve as case studies on how the process of inward direct investment into Japan
actually occurs, and how it contributes to economic growth and the prosperity of
the Japanese people.
I would like to express my appreciation on behalf of the ACCJ to Professors
Fukao and Amano for their outstanding research and analysis, and especially to
commend Chairman Benes for shepherding this complex and time-consuming
project to fruition. In addition to overseeing the processes and inspiring his task
force colleagues—who numbered almost 40—Mr. Benes also did much of the
drafting for the general policy recommendations. His leadership, energy, and
creativity were critical to the success of this undertaking.
I also would like especially to commend the work of the following task force
members for their contributions of time and talent: Hidetoshi Asakura, Lawrence
Bates, William Bishop, Andrew Conrad, John Diefenbach, Stephen Elliott, Robert
Grondine, Toshi Hayami, Debbie Howard, Thomas Jordan, Masa Katsuyama,
Terrie Lloyd, Mike Makino, Masa Matsushita, Takayuki Nakamura, David Sneider,
Eric Sedlak, Linda Sherman, Gary Thomas, John Tofflemire, Kiyoshi Tsugawa,
and Yasuaki Tsuchiya. Finally, I must extend our gratitude to the ACCJ staff
members under Executive Director Donald Westmore who put in long hours
and effort in support of this exceedingly complex project: Abby Pratt, Ryan
Armstrong, Miho Yasuda, Emi Ogawa, Douglas Jackson, and Brechtje Zoet.
Sincerely,
Lance E. Lee
ACCJ President
letter from the president
3. 1
Chair
Nicholas E. Benes
JTP Corporation
Vice Chairs
David L. Shuler
Goldman Sachs (Japan) Ltd.
Thierry Porté
Morgan Stanley Japan Ltd.
Vice Chair, Communications Strategy
Kumi Sato, Cosmo Public Relations
FDI task force team leaders
Nonperforming Loans
Yasu Tsuchiya and Masa Matsushita
Transparency and Corporate
Governance
Dave Sneider, Hidetoshi Asakura, Nicholas Benes
Labor Mobility and Social Safety Net
Eric Sedlak and Larry Bates
Deregulation and Promoting
Entrepreneurship
Ted Johnson and Mike Makino
Stock Swaps
Bob Grondine, Gary Thomas, Eric Rouse
Cash Mergers
Dave Sneider
the FDI task force of the american
chamber of commerce in japan
FDI task force sponsors
Gold Sponsors
AFLAC
AIG Companies
Baker & McKenzie/Tokyo Aoyama Aoki Law Office
Citibank, N.A.
The Coca-Cola Company
Eli Lilly Japan K.K.
Federal Express Corporation
General Motors Asia Pacific (Japan) Ltd.
General Electric Japan, Ltd.
Goldman Sachs (Japan) Ltd.
IBM World Trade Asia Corporation
Japan External Trade Organization (JETRO)
JTP Corporation
Morgan Stanley Japan Ltd.
Nestlé Japan Group
White & Case LLP
Silver Sponsors
GMAC Commercial Mortgage Japan K.K.
KPMG
MIDAS Co. Ltd
Bronze Sponsors
A. T. Kearney K.K.
Cargill Japan Ltd.
Deloitte Touche Tohmatsu
H&R Consultants
Hyogo Prefecture (Hyogo Prefectural Government
Business Support Center, Tokyo)
PricewaterhouseCoopers Japan
Simpson Thacher & Bartlett LLP
State Street Japan
Temple University Japan
4. 2
introduction
In his general policy speech to the Diet on
January 31, 2003, Japanese Prime Minister
Junichiro Koizumi unequivocally welcomed foreign
direct investment (FDI) as a way to help revive
the country’s economy and achieve sustained
growth. In this first-ever reference to FDI in a
Prime Minister’s opening annual policy address,
he stated:
”Foreign direct investment in Japan will bring new
technology and innovative management methods,
and will also lead to greater employment
opportunities. We will take measures to present
Japan as an attractive destination for foreign
firms, with the aim of doubling the cumulative
amount of investment in five years.”
Doubling the nation’s FDI stock by 2008 is an
ambitious target, considering Japan’s low ranking
among major economies in inbound FDI levels.
According to IMF statistics in the year 2000,
Japan’s FDI stock stood at just 1.1 percent of
GDP, lagging far behind the UK (32.4 percent),
the United States (27.9 percent), and Germany
(22.4 percent), among others. UNCTAD’s data
show that China’s FDI inflows for 2002 ($52.7
billion) were almost six times as large as Japan’s
($9.3 billion), and were equivalent in size to
Japan’s entire cumulative stock of FDI. China’s
FDI stock already stood at $448 billion; Japan’s
was less that one-seventh as large, at $60 billion.
Japan’s lonely single-digit cumulative FDI figure
reflects postwar domestic policies that were
designed to promote and develop local companies
and industries to meet specific national industrial
structure goals. In fact, it was only in 1990 that
the government first issued a statement clearly
inviting outside investment in Japan—long after
formal barriers to foreign investment had been
removed in 1980 with the major liberalization of
the Foreign Investment and Foreign Exchange
Control laws.
The new ”welcome FDI” policy in 1990 gained
some momentum when the Japan Investment
Council (JIC)—an advisory body to the Cabinet
headed by the prime minister—was formed
in 1994. The JIC, which includes an expert
committee chaired by Keio University Professor
Haruo Shimada, regularly submits reports and
recommendations to the Cabinet. These materials
provide the base for current government policies
welcoming and promoting inbound FDI.
There have been other positive moves made
on the FDI front in both the public and private
sectors. In September 2002, for example, a
group of business leaders and prominent experts
who share the view that expanding foreign direct
investments will stimulate the economy launched
the Invest Japan Forum (IJF). The IJF has since
proposed a 12-point program to promote FDI in
Japan. In April 2003, the Ministry of Economy,
Trade and Industry (METI) announced a project
to support regional activities to attract foreign
enterprises, selecting five local areas with unique
plans to promote FDI to serve as models for
other local governments.
Another positive step was the May 2003
establishment of JETRO’s one-stop ”Invest
Japan” center offering information and support
to potential investors. Prime Minister Koizumi
himself attended the opening ceremony to
stress its importance. More recently, METI’s
July 2003 ”White Paper on International Trade”
recommended utilizing FDI as ”an effective
method for vitalizing the Japanese economy,” and
referred as follows to recommendations made by
the JIC’s Expert Committee in April 2003:
”Inward FDI brings with it new capital,
human resources, management know-how
and technology that are free from existing
organizations and practices. Cooperation with
foreign enterprises can also enable companies
to respond to the challenge of global competition
in product development. [Foreign] companies
can provide new products and services that do
not exist in the domestic market and thus create
a new market, enhancing competition
and increasing benefits to consumers. In
addition, foreign capital can serve as a provider
of so-called risk money, which is not averse to
taking proper risks. . . . Such new winds may
become ’A Key to Revive Japan,’ revitalizing
the economy and securing employment.”
foreign direct investment policy
in japan: from goals to reality
2
5. mixed reactions
The American Chamber of Commerce in Japan
(ACCJ) applauds these forceful policy statements
and the concrete reforms made in recent
years to draw more FDI to Japan. We strongly
believe that—as shown in the FDI study and
accompanying case studies—foreign investment
serves the interests not only of international
businesses but also those of Japan’s economy,
workers, consumers, and local governments.
That said, we recognize that the Prime Minister’s
statement and policies on increasing FDI have
drawn mixed reactions.
On the one hand, many mayors and prefectural
governors have initiated programs or intensified
existing efforts to attract FDI in an attempt to
recharge their economies and generate new
jobs through fresh investment. Quite a few Diet
members endorse Prime Minister Koizumi’s goal
as crucial to opening the nation’s economy to
greater competition that would boost productivity
and employment. Some are even contemplating
starting an FDI promotion league within the Diet.
more data and analysis required
But in the absence of dependable data and
analysis, some critics suggest that more FDI
may mean fewer jobs rather than more. They
fear that foreign companies acquiring Japanese
companies will rationalize operations by cutting
staff more than attrition, bankruptcy, or Japanese
buyers would. Some simplistically assume
that only greenfield investment—creating new
manufacturing facilities where none currently
exist—brings benefits. In this view, mergers
and acquisitions (M&As) are unconnected to
follow-on greenfield and expansion investment,
and will be dominated by ”vulture” funds seeking
to reap big, quick profits by taking advantage of
troubled firms.
These downbeat outcomes are not borne out by
the actual data on FDI flows. Further, opinion
polls indicate that the Japanese public recognizes
that, after more than a decade of economic
stagnation, policy that is grounded more in
emotion than reality cannot restore Japan to
growth and sustainable prosperity. At the same
time, many Japanese are understandably anxious
about how they will be affected individually, how
much change is really needed, and what role
foreign investment should play. These issues
are not unique to Japan; similar concerns were
raised in the United States in the 1980s about
the waves of Japanese investment during that
time. The United States broadly welcomed FDI
from Japan and other countries, and the resulting
inflows helped revive the U.S. economy.
The ACCJ fears that such varied reactions—and
the lack of analysis about the positive benefits
FDI has already brought to Japan—are having
a chilling effect on the government’s ability to
achieve its 2008 FDI target. Too little is known
about FDI in Japan, and too much is incorrectly
assumed without regard to the facts. Where is
FDI growing, and why? How are the different
types of flows interrelated, and what is their
impact on the economy, growth, and jobs? If
government policies are to be effective, they
need to be supported by real-world data. And
unless such policies produce concrete results,
they will not be enough to counteract Japan’s
past reputation as a nation that was for so long
effectively closed to foreign investment.
the ACCJ’s FDI task force
project
The ACCJ’s FDI Task Force Project features an
economic analysis by two respected academics,
Professor Kyoji Fukao of Hitotsubashi University
and Tomofumi Amano of Toyo University. This
report–entitled the Fukao Report–evaluates the
flows, dynamics, and impact of Japan’s FDI, and
highlights the sort of policy changes that can
realistically increase those flows. Supplementing
their work are case studies describing successful
investments already made by ACCJ member
companies. The latter depict real-life examples
of the process by which FDI actually occurs,
based on the everyday experience and long-term
commitment of typical ACCJ member firms.
By presenting a true and balanced picture of FDI
in Japan based on a solid analysis of the data
and actual case studies, we hope to dispel fears
and misconceptions, and to offer a foundation
for designing effective Japanese government
policies that will increase FDI and benefit Japan’s
economy and society.
the focus of this report
In this document, based on the Fukao Report’s
conclusions, we will examine the effects of
foreign investment on the nation’s economy,
and Japan’s experiences with FDI to date. We
would also like to review some of the myths that
surround the topic of FDI here, and suggest how
Japan can foster a ”virtuous cycle” of investment
by employing effective policies that will correct
its historic reputation as a country that is
unreceptive or resistant to foreign investment.
6. Specific recommendations on policy priority
areas and policy changes that would significantly
improve the attractiveness of the Japanese
market to foreign investors—and hence to
Japanese domestic investors as well—will be
published in a forthcoming document.
the importance of market-
based competition
In previous publications such as The U.S.–Japan
Business White Paper and ”The Long Road To
Reform,” the ACCJ argued that, in a world of
increasingly interdependent global markets,
investment does not have a nationality. A healthy
global economy that can eradicate poverty and
raise standards of living requires the widest
possible participation, and a world with some six
billion inhabitants needs more than one engine
of growth. The world has become too dependent
on the economy of one nation: the United
States. Without a vibrant and growing Japanese
economy—which will remain the second largest
in the world for some time to come—we are
all vulnerable to severe trauma if the U.S.
economy falters.
Regardless of the economic system a country
adopts, investment drives economic growth and
creates more jobs, and jobs of higher quality.
That general understanding, however, does not
pinpoint where investments should be made to
produce the best results. Nor does it address the
question of who should make the related policy
and investment decisions, or how those decisions
should be made.
The ACCJ has long asserted that the best way
to achieve sustained, healthy growth is to
foster an open, global economy that promotes
market-based competition, meaning an economy
characterized by access to reliable information,
transparency, accountability in decision-making,
and the ability to deploy financial, technological,
and human resources to their most productive
uses. The vitality of a nation’s economy and
market lies in the productive jobs that the nation
creates and sustains for its people. The ultimate
goal is to increase productivity, enhance return
on capital, and create value-added jobs that raise
everyone’s standard of living.
Appropriate levels of government regulatory
oversight are of course necessary to safeguard
public health and safety in any economy. But the
broader general rule should focus on and foster
an open, competitive marketplace.
Although the subject of this study is how foreign
direct investment benefits Japan, it is instructive
to look at the experiences of other developed
nations, including the United States, where FDI
accounts for nearly 12 percent of the country’s
output. Such examples indicate that the same
conditions that attract foreign investors also
help domestic investors and the economy by
increasing returns on capital, productivity,
incomes, and the number of value-added jobs.
At the end of the day, the major growth drivers
in very large economies such as Japan and
the United States are domestic investors. The
additional marginal stimulus from FDI assists in
that process, however, smoothing out domestic
downturns through international counter-cyclical
investments, while delivering the extra benefits
of know-how and productivity gains.
The financial ”Big Bang” and other regulatory
reforms over the past few years indicate a
profound shift in favor of Japan adopting
these basic concepts. Japan’s more open and
transparent business environment has already
attracted substantial investment from abroad
and enabled many Japanese corporations to
re-examine corporate strategies and adopt
new ones to meet the challenges of globalized
markets and demographic changes in Japan.
maximizing positive change
When working properly, markets function as
mechanisms to raise productivity, efficiency, and
standards of living. In other words, markets can
bring change for the better. But to be effective,
they need the support of a complementary
social, cultural, and political infrastructure. An
effective social safety net, for example, ensures
that the health and retirement needs of workers
will be met, and that workers can get temporary
financial relief when changes in the market cause
their income to drop. Workers must have both
the financial flexibility and opportunity to acquire
new skills to master new technologies or meet
changing consumer demand. Otherwise, the
labor pool will not be mobile enough to ”retool”
itself so that new companies will be able to enter
industries and hire new staff as they invest.
Likewise, the environment must be protected,
food and workplace safety assured, and equitable
taxation and income distribution promoted.
Similarly, foreign investment must always respect
a country’s social, legal, and cultural systems—
or risk failure. Japanese investors in the United
States, for example, have adapted to the U.S.
legal and social systems. Successful foreign
companies operating in Japan are those well
4
7. 5
schooled in such things as Japanese labor rules
and consensus-based decision-making. In fact,
almost all of their employees and managers are
Japanese nationals. Successful future investors
will have to follow these examples.
what is ”foreign direct
investment”?
The Hierarchy of Investment Value
• Investment is good for an economy
• Direct investment creates jobs, stimulates
growth, and fights deflation
• Foreign direct investment creates even
more jobs, stimulates greater growth and
productivity, and is even more effective at
fighting deflation
FDI is direct investment, not portfolio investment.
As described in the Fukao Report, direct
investment entails the transfer of know-how
and management resources to a recipient
company from an investor with the ability and
the incentive to make such transfers. FDI also
tends to be much more committed and long-term
capital than portfolio investment because the size
of the investment outlays is large and liquidity is
limited. This makes it much harder to pull back
or retreat from direct investments.
So while all types of investment are generally
good for an economy, direct investment offers
extra benefits. It creates new employment and
increases spending and aggregate demand,
which helps fight deflation. It brings new business
models, know-how, products, and management
methods. In so doing, direct investment boosts
productivity and supplies valuable risk capital to
the market.
According to a May 2002 JETRO survey, foreign-
owned and affiliated firms employ more than
one million full-time employees, about 2.3
percent of Japan’s total labor force. Moreover,
the employment contribution of foreign firms
has been growing rapidly. The Fukao Report
noted that employment due to FDI in Japan grew
nearly fifty percent from 1997 to 2001.
A relatively high proportion of these jobs
were high-value-added positions.
who are these foreign
employers?
Many of them are familiar names. Some of the
top foreign employers in Japan are:
As the case studies show, many foreign
companies have remained committed to the
Japanese market over several decades:
Nr
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Company Name (Parent Co.)
Nissan (Renault)
IBM Japan
Mazda (Ford)
Mitsubishi Motors(DaimlerChrysler)
Mitsubishi Fuso (DaimlerChrysler)
Suzuki (General Motors)
Isuzu (General Motors)
Axa Life (Axa Group)
The Seiyu Ltd. (Walmart)
Bosch Automotive
Japan Hewlett-Packard
GE Edison Life (AIG Group)
JATCO
Japan McDonalds
Alico Japan (AIG Group)
Manulife
AIG Star Life (AIG Group)
Japan Unisys
Zexel Valeo Climage Control (Bosch Automotive)
New Caterpillar Mitsubishi (Caterpillar)
5
Company Name
Initial
Investment
in Japan
International Banking Corp. (Citibank NA) 1902
IBM Japan 1937
AIU (AIG Group) 1946
Coca-Cola Japan 1957
AFLAC Japan 1974
Louis Vuitton Japan 1978
Oracle Japan 1985
Showa Shell Sekiyu K.K. 1985
Source: verified with individual companies
Source: Toyo Keizai Inc., Gaishikei Soran 2003
8. 6
As the Fukao Report points out, foreign direct
investors create and establish new businesses.
According to JETRO, from 1995 to 2000 (the
last year for which data is available), 599
new businesses were established by foreign
enterprises. On average, the revenues of foreign
enterprises (and, consequently, employment)
grow faster than those of domestic firms:
Productivity and jobs both increase after
foreign companies enter markets in Japan.
Once established, they consistently spend more
per employee (including wages), make more
capital investments, and are more profitable
and efficient. Foreign firms bring direct and
spillover benefits such as new know-how,
business models, and different techniques that
can help address low levels of productivity in
all sectors of the economy–particularly in the
service sector, where much of Japan’s future
growth and job creation is likely to occur. It is
no coincidence that Japan’s most productive
industries are those that have been exposed
to the greatest level of foreign competition. In
general, deregulated sectors show higher levels
of productivity, productivity improvement, and
foreign investment than highly regulated sectors.
Foreign-affiliated companies also pay significant
corporate taxes. Some of the largest foreign-
affiliate corporate taxpayers are:
japan’s recent FDI experience:
more jobs, better productivity
As many economists have noted, lagging
productivity growth is one of Japan’s core
problems. In its examination of Japan’s FDI
flows, the Fukao Report analyzes the many
contributions that FDI makes to job creation and
improving productivity in Japan. The economic
analysis shows that FDI boosts growth in jobs
and the economy, not just because of the
resources, support, and expansion it contributes,
but also because it promotes longer-term
productivity and sustainable corporate growth.
the fukao report’s conclusions
The principal economic conclusions of the Fukao
Report are both profound and worrisome:
• Japan’s policies and practices have inhibited
inward FDI for more than a hundred years.
As a percentage of GDP, the country’s inward
FDI stock is currently one-eleventh that of
the United States and a twenty-eighth that of
the U.K. Globalization has also rapidly pushed
Japanese capital and management resources
overseas as direct investment. Japan’s low FDI
inflow level will not offset this ”hollowing out”
of the country’s economy.
6
Taxable Income (millions of yen)
Company Name 2001 2000
IBM Japan 125,218 142,052
AFLAC Japan 110,651 95,385
Coca-Cola Japan 86,789 66,200
AIC Corp. 67,696 33,792
Nikko Citigroup 52,164 59,572
Showa Shell Sekiyu K.K. 50,352 18,715
Louis Vuitton Japan 32,405 25,648
Oracle Japan 30,958 18,751
Source: Toyo Keizai Inc., Gaishikei Soran 2003
Source: UNCTAD, World Investment Directory 2003.
UNCTAD’s definition of ”foreign company” here is a bit
narrower than JETRO’s and the Fukao Report, but the
strong upward trend in the employment numbers is
exactly the same.
Number of Foreign Enterprises Established
in Japan 1995 - 2000
Year 1995 1996 1997 1998 1999 2000
Number 116 116 92 73 95 107
Total: 599 companies
Ave: 100 establishments / year
Source: METI, The 35th Survey of Trends in Business
Activities of Foreign Affiliates
9. 7
• The root cause of Japan’s low growth rate and
deflation is sluggish private investment,
which in turn can be traced back to the low
productivity and profitability of Japanese
firms. Japan can no longer rely exclusively
on its accumulated capital and management
resources as a way to cope with these crises.
• Economic analysis demonstrates that most
foreign-affiliated companies—including
Japanese companies acquired through M&A—
have about 10 percent higher productivity,
greater capital investment per employee,
and significantly higher profitability than
their domestic Japanese counterparts. If the
share (to GDP) of foreign-affiliated firms’ total
investments in Japan were to rise 10 points
to the 11 percent average among developed
countries, both Japan’s total capital stock and
GDP growth would rise by 1.5 percent.
• Contrary to popular belief, the economic
benefits of FDI are broadly distributed
throughout Japan, not concentrated in Tokyo.
While 87 percent of foreign companies do base
their headquarters in Tokyo, Kanagawa, and
Osaka, 54 percent of their facilities—and just
under half of their employees—are located in
other regions.
• Reductions in staff by foreign-affiliated firms
have not been noticeably higher than cuts by
domestic firms. It is true that foreign-affiliated
firms rely more heavily on capital investment
and R&D. However, even though foreign-
affiliated firms may initially employ fewer
people, this is offset by the steadier growth
and profitability they enjoy. The notion that
introducing foreign management strategies will
reduce or destabilize employment, even among
Japanese companies, is false.
• For both Japanese and foreign acquirers,
staff reductions are often a short-term
outcome of an acquisition. However, the
firms acquired are often suffering from poor
management and underinvestment and would
have failed eventually, resulting in the loss of
all jobs.
• The recent wave of inward FDI is over. The
rapid influx of FDI to Japan in the latter half
of the 1990s was driven by a convergence
of factors that are now losing momentum:
deregulation of the non-manufacturing sector,
the rise in corporate failures, declines in stock
valuations, reductions in cross-shareholdings,
and the global M&A boom.
• As in all developed nations, M&A is the primary
vehicle for FDI in Japan. Increases in the stock
of FDI are driven by M&A transactions because
the latter accelerate the timing and volume of
follow-on investment that expands operations
and brings new know-how. However, M&A
is not synonymous with FDI. In Japan, as
elsewhere, the vast majority of M&A activity
occurs between domestic companies.
• M&A and ”greenfield” investment are
interconnected and often occur in tandem.
M&A transactions, and the expansion
investment that follows them, generate all
of the same economic benefits of FDI that
”greenfield” investments do.
• For Japan to prosper, the country needs to
attract more FDI, including M&A. This is
because foreign direct investment is very
different from portfolio investment in three
major respects: it brings follow-on capital for
expansion, thereby creating jobs; it transfers
new management know-how, products, and
business models to Japan’s markets; and it
tends to stay for the long term.
• Japan is losing out in the competition to lure
more global companies–including Japanese
companies—to invest within its borders; Tokyo
and Osaka are now vying with Shanghai and
Seoul. FDI flows to Japan fell 42 percent in the
first half of 2003, and at the current rate Japan
will reach only one-half of its 9.4 trillion yen
goal by 2008.
• To succeed in attracting investment,
government policy must be based on a
more dependable analysis of FDI flows and
opportunities than presently exists. Analysis
of the data generated during this study
indicates the following:
7
Source: UNCTAD, World Investment Directory 2003
Billion$s
10. 8
a) Key industries must be deregulated or
privatized to remove restrictions on
market entry by all firms, whether
foreign or domestic. This deregulation
will not have sufficient impact unless
it includes ”protected” areas such as
healthcare services and education, and
public corporations that are suitable
for privatization.
b) Relevant laws must give more autonomy
and resources to local governments so that
they can differentiate themselves in front of
investors, with incentives and infrastructure.
c) The legal framework must be improved to
allow foreign firms to use convenient
methods such as stock swaps in M&A
transactions.
FDI is one of the keys to revitalizing Japan’s
economy, and the success or failure of Japan’s
inward direct investment policies will have a
significant impact on the personal wealth of the
Japanese people.
dispelling myths and fears
about FDI
Prime Minister Koizumi’s call to make Japan a
place where foreigners would like to invest, live,
and work signals a welcome change in attitude.
But many concrete impediments to increasing
Japan’s low cumulative FDI remain: excessive
regulation, an overly centralized national policy,
limited investment opportunities, restricted and
nontransparent capital markets, high costs, and
unfriendly legal regimes combine with other
aspects of the investment environment to make
investment time-consuming, disproportionately
expensive, or simply unappealing.
Perhaps most damaging of all, however, are
the many misperceptions and fears about how
foreign companies and FDI affect Japan. Policy
gaps that prevent Japan from attracting (or
retaining) more investment with regard to FDI
can often be traced to these mistaken beliefs and
a lack of real-world exposure to the mechanisms
and benefits of foreign investment. Indeed, it was
to help dispel these misperceptions and fears that
the ACCJ asked Professors Fukao and Amano to
analyze the actual data on Japan’s FDI flows.
Below are several of the more pervasive myths
about FDI, followed by some of the facts that
disprove them.
Myth: Foreign companies cut jobs and
do not expand.
Reality: According to JETRO, foreign companies
and FDI have added 643,000 new jobs to Japan’s
economy since 1993. Moreover, the Fukao Report
shows that, over time, foreign companies grow
faster, create more new jobs, and have faster
job growth than domestic Japanese companies.
In some cases the reason foreign companies are
more productive than domestic companies is that
they do more with fewer employees. Even when
foreign companies reduce employment as
a way to restore profitability, they usually
rebound in subsequent years and enhance
revenue and employment as a result.
Myth: FDI is a one-time event, and the
investment is easily pulled back.
Reality: This pattern rarely occurs in real
business. The FDI Task Force’s case studies
and numerous other examples show that most
FDI is an ongoing and committed process.
Companies with no long-term commitment
and no staying power seldom invest in the
first place. Of all types of investment, including
individual and institutional portfolio investment,
direct investment is the least liquid and the
hardest to pull out. Direct investment is
committed investment.
Myth: Most FDI only benefits the Kanto and
Kansai regions, not Japan’s other regions
and local governments.
Reality: This is simply not true. Many corporate
headquarters are indeed located in Tokyo,
Kanagawa, and Osaka, but the data and analysis
in the Fukao Report show that in terms of impact
on employment, the benefits of FDI penetrate
deeply and relatively evenly into Japan’s regions.
Source: Research Institute of Economy, Trade, and
Industry, Research on the Impact of Quantitative Change
in Foreign Direct Investment in Japan on Japan’s Economy
and Employment, 2000.
The primary source material is micro data from the 1996
Establishment and Enterprise Census.
11. This pattern does not mean, however, that
opportunities for greenfield investments in
Japan will not arise. The United States, which
has high wages, has received significant amounts
of greenfield FDI. The state of Illinois, for
example, hosts 6,447 foreign firms that employ
approximately 340,000 people. In the 1990s
Indiana became the national leader in steel
production, due largely to the investment by
steel producers from around the world. In
Indiana, over 40,000 residents currently work
at Japanese-affiliated manufacturing plants,
up from just over 7,000 in 1990.
Myth: Greenfield investment is preferable
to M&A investment.
Reality: In fact, as our case studies show, the
two are deeply interconnected and therefore hard
to separate. Successful greenfield investment
leads to M&A, and vice versa; both lead to follow-
on expansion investment that creates new growth
and new jobs. Focusing solely on one form would
result in a less attractive investment environment
and much less FDI overall. Promoting both is the
only sensible strategy.
In developing countries, where labor costs
are low, most investment is in manufacturing
facilities to produce exports to richer countries.
In most developed countries, however, some 80
percent of foreign investment occurs through
M&A activities. Japan is no exception: the
overwhelming portion of new investment since
1995 has been through M&As, particularly
when the follow-on investment that occurs is
considered. This will continue to be the case
in Japan as well as globally. Investors like to
acquire a larger ”base” that will generate larger
investment opportunities and then expand faster
and more efficiently. The quicker expansion and
the new ownership of assets M&As cause can also
help resolve the debt crisis.
Myth: Foreign firms just buy companies
to suck out the value.
Reality: Even if an investor were tempted to
do this, justifying acquisitions on such a basis
would be extremely difficult. Foreign companies
almost always need to have a growth strategy in
mind so they can make profitability projections
that justify the price paid for an acquisition. Most
foreign M&A deals in Japan result in a turnaround
of the company and faster subsequent growth
in revenues, earnings, and jobs. To accomplish
this, the foreign acquirer usually invests more
funds after the initial deal. In fact, this has often
been utterly essential because, on average, most
companies acquired by foreign firms have been
much more distressed than those bought by
domestic acquirers.
Myth: Most FDI is short-term private equity
(so-called vulture or turnaround funds).
Reality: First, most FDI comes from strategic
investors and operating companies. Less than
5-10 percent has been investment by private
Source: UNCTAD, World Investment Report 2003
Data Source: Development Bank of Japan
Data Source: Development Bank of Japan
Years preceding/following transaction
-7 -6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5
-8 -7 -6 -5 -4 -3 -2 -1 0 +1 +2
Years preceding/following transaction
12. competitiveness, corporate governance practices,
stock market returns, and the efficiency of
asset allocation and reallocation. The analysis
by Professors Fukao and Amano shows that
M&A, asset reallocation, and ownership transfer
transactions of any type (foreign or domestic)
improve Japan’s economy in these ways.
The Fukao Report demonstrates that these
benefits are even greater in the case of M&As
by foreign companies. But M&A opportunities
are much more limited for foreign firms. This
is not just because of misconceptions and
cross-shareholdings. It is also because corporate
and tax laws in Japan still do not permit foreign
companies to use most non-cash transaction
methods in pursuing M&As. In contrast, domestic
companies are free to utilize a variety of
”non-cash” transaction structures (such as
stock swaps and mergers), and are actively
taking advantage of that extra flexibility. This
explains a significant portion of the recent boom
in domestic M&A activity.
equity financial investors, sometimes referred
to pejoratively and indiscriminately as ”vulture
funds.” In actual fact, such funds bring in much-
needed risk capital that provides support and
growth opportunities for companies that are
unable to find other backers. In fact, a large
portion of money from such financial investors
is not foreign money at all, but rather private
equity investments by Japanese funds supported
by domestic financial institutions. Moreover,
a portion of the funds invested end up with
Japanese sellers or lenders, who may then
redeploy the funds elsewhere.
Analysis shows that all types of FDI increase
productivity and efficiency of asset reallocation.
Even when FDI is in the form of asset or debt
purchases by financial investors for remarketing
over a few years, these transactions get assets
back into productive use, removing drags on
economic growth. The ACCJ believes that, if
anything, Japan needs much more private
equity investment—both domestic and foreign
money–and a more vibrant capital market.
*Values are based on public announcements and
disclosures.
*The ”PE % of Total M&A” is the proportion of total M&A
transaction value comprised by both domestic and foreign
PE fund investments.
*The ”Foreign PE % of Foreign M&A” is calculated against
total foreign M&A transaction value.
*Source: PE and M&A transaction values, including foreign
capital, were acquired from Thomson SDC Database or
Recof Data.
Myth: Foreign companies make most
M&A deals; Japanese companies do not
make acquisitions.
Reality: Domestic acquirers actually make up the
majority of M&A transactions in Japan, whether
measured by volume or number. The dramatic
increase in M&A transactions over the past fifteen
years, led by domestic companies, is a positive
development that will improve productivity,
Data Source: Recof M&A Databook 1988 - 2002
Source: Morgan Stanley and Thomson Financial
Based on number of transactions.
10
13. 11
Myth: Trade follows investment.
Reality: Trade does usually expand following
investment. But the opposite is also true:
investments, especially in greenfield
manufacturing, usually occur after a company
establishes a market presence. The United States
benefited greatly from inbound Japanese FDI by
companies that had first acquired experience in
the U.S. market through trade, and needed to
service and satisfy customers better by having
a local base. ”Trade follows investment” is
therefore a misleading slogan, because:
a) liberalizing trade first is one of the best ways
to stimulate FDI, and b) it can become an excuse
to delay trade liberalization.
fostering a ”virtuous cycle”
of investment
An attractive investment environment fosters
investment opportunities by making it easier
to quickly deploy assets and resources to their
most productive uses. National policies built on
this principle will create results for which the
whole is more than the sum of the parts. Japan’s
own experience in the past five years attests to
this reality: the country has doubled the flow
of inbound FDI, albeit from a low base, mainly
because of the new opportunities created by
Japan’s first deregulatory drive and the partial
relaxing of cross-shareholdings by banks. The
most important lesson has been that investment
begets more investment.
Japan’s challenge is to build on the last five years
of structural reform despite a recent slowdown
in inbound FDI and an acceleration of Japanese
investment abroad, especially in manufacturing
plants. As Professors Fukao and Amano point
out, the first ”wave” of investments propelled by
prior deregulation steps has apparently ended.
And although foreign M&A transactions increased
sharply from 31 in 1996 to a peak of 175 in
2000, they fell to 165 in 2001 and just 129 in
2002. Finally, as mentioned at the beginning of
this document, the net FDI stock is still extremely
low compared to that of other developed nations.
The persistence of slow to flat economic growth,
low investment overall, low capital spending,
the ”hollowing out” phenomenon as Japanese
capital disinvests and moves offshore, protracted
deflation, and rising unemployment currently
make Japan’s market less attractive to investors,
who see higher returns available elsewhere in
the region.
Foreign investors have also received mixed
signals on how firmly committed the government
is to fulfilling its goal of making Japan a truly
”investor-friendly” market. The government
permitted the sale of Aozora Bank to a foreign
investor—in the end a positive signal—but only
after months of back-room efforts and apparent
searches for domestic ”white knight” purchasers.
Yet shutting out foreign companies from investing
in firms such as Snow Brand reveals that the
”investor-friendly” policy objective has not
been completely accepted by bureaucrats
in all ministries.
Still, the ACCJ believes the official policy direction
is positive, and that opportunities to invest
in Japan are growing. While Japan’s sluggish
economic growth is causing some investors to
focus on higher returns obtainable elsewhere in
the region, Japanese companies are divesting
unprofitable units to concentrate on core
businesses, unwinding cross-shareholdings,
and restructuring. Efficient asset reallocation
and focusing of strategies can create new
opportunities for all.
The ACCJ urges the Japanese government to
build on the progress made to date and adopt
a coordinated national policy of legal and
regulatory changes to facilitate FDI, stressing
the importance of market forces and a free
capital market, and helping those forces to be
more efficient.
Based on the conclusions of the Fukao Report,
we would like to offer the following broad policy
suggestions to expand the virtuous cycle in which
initial inflows can lead to follow-on investments.
Source: Morgan Stanley and Thomson Financial
Based on number of transactions.
11
14. 12
We believe that such a virtuous cycle can
strengthen Japan’s reputation as a market for
investment and spur another doubling of FDI
over the next five years:
• Prime Minister Koizumi, ministry officials, and
other political leaders must continue to make
forthright public statements both at home
and abroad in support of foreign investment,
and follow up with clear policies and concrete
actions. Public statements should be frequent,
and should focus on dispelling the many
misconceptions about FDI that exist in Japan.
• Government bureaucracies should be made
more accountable to advancing policy
objectives for increasing FDI. A good start
would be to educate the Japanese public on
how the changes that make Japan an
attractive place for foreign investors will not
only help create jobs and sustainable growth,
but will also help Japanese companies and
industry to become productive so that the
economy recovers.
• A campaign of advertising and events to
increase interest, receptivity, and
understanding about FDI and its benefits,
dispel misconceptions, and to reach out to
foreign investors to understand what concerns
and obstacles they face.
• Lead a ”paradigm shift” toward greater reliance
on market principles that encourage
investment: free capital markets; transactions
that are ”free” in principle with only a few
exceptions that are clear and very limited;
healthy corporate governance, transparency,
and accountability; and regulatory and
administrative simplicity. We suggest a
Cabinet-level advisory group that would focus
on recommending precise reforms that will
reinforce healthy and competitive market
principles.
• Accelerate deregulation and privatization.
Unlock investment opportunities for both
foreign and domestic firms in areas such
as medical care, education, retailing, utilities,
agriculture, professional services sectors,
postal and delivery services, financial
advisory and asset management sectors,
and outsourcing of public services. Removing
government institutions from a major role in
the lending business would also be a
key action.
• Make it easier for foreign investors to execute
ownership transfers and M&A transactions.
Change laws so that techniques such as cross-
border stock swaps with tax deferral and ”cash
mergers” can be utilized. Educate the public
and corporate managers about the benefits of
timely M&A as a technique to help companies
survive and maintain employment, and to
ensure their sustainable long-term growth
by securing access to new resources and
know-how.
• Embark on a crash program to build a
social safety net that improves labor mobility,
facilitating faster entry to new industries and
softening the impact of exits by inefficient
competitors. Assist displaced workers
financially and by training or subsidizing them
to acquire value-added skills. Expand 401K
pension benefit limits and features to enhance
both attractiveness now and ”portability”
over time.
• Strengthen and support the autonomy and
authority of local governments to offer tax
and other incentives so they can differentiate
themselves and attract more FDI. Focus JETRO
and key agencies such as METI on assisting
local governments so that the latter can more
actively seek investors for specific companies
and situations in their jurisdictions, and can
”target” specific companies to urge them to
make ”special zone” applications.
• Encourage and assist regional governments
to design investment promotion programs
that produce concrete results. It is particularly
important that local governments:
a) Consult with foreign companies and the
groups that represent them during the initial
design phase to obtain detailed feedback on
planned promotions
b) Target new investors to the region, and
reward companies for growing their
presence rather than focusing support and
tax/subsidy benefits on companies already
set up in the jurisdiction but which are not
making new investments
c) Promote a mobile labor market by
supporting training (especially, English-
language training), and provide subsidies
or tax benefits directly to individuals rather
than to the companies that employ them
• Implement necessary policies and legal
framework changes quickly, thereby creating
early results and investment ”success stories.”
Policies and changes should be based on
dependable analysis of actual FDI flows,
their drivers, and their dynamics.
12
15. 13
In a follow-up report to be released in the coming
months, the ACCJ will offer specific and concrete
recommendations on the policies that can
accomplish this, addressing the following issues:
• Deregulation and facilitating entrepreneurship
• Labor mobility and social safety net upgrades
• Accelerating the clearance of nonperforming
loans
• Stock swaps and triangular mergers
• Cash mergers
• Corporate governance and transparency
• Strengthening education and medical services
conclusion
Japan needs even more direct investment, and
needs it now. Economic data clearly shows that
foreign direct investment brings extra benefits
to Japan, in terms of productivity, growth, and
jobs. In fact, the analysis reveals that FDI is
one of the most important keys to revitalizing
Japan’s economy.
Japan has taken the first steps toward welcoming
foreign investment, and the response by
international investors has been very positive.
However, the factors that drove the recent
wave of FDI have ended. In the years to
come, if Japan is to attract its fair share of FDI
from the competitive global marketplace, the
country will need to further accelerate reform
and deregulation, improve laws that affect
investment, and simplify procedures. It will
need to do this with greater vigor, speed, and
determination than in the past.
13