The Evolution of Japanese Direct Investment in Europe

In a visit to Europe in 1962 the Japanese Prime Minister Ikeda was dismissed by President de Gaulle as a transistor salesman. In the summer of 1990 French Prime Minister Rocard travelled to Japan to elicit greater flows of investment by Japanese companies to France. The rise of Japan as an economic power and the growing integration of Europe have been two of the key developments in the world economy over the last two decades. The 1990s are likely to present many challenges to relations between these two economic superpowers. The authors of this book assess one of the critical elements of the relationship between Europe and Japan. They chart the meteoric rise of Japanese investment in Europe and compare it with the changes in Japanese investment elsewhere and investment by other countries in the EC. They use theoretical work on foreign direct investment (FDI) to assess coporate investment strategies and examines the role of multinational enterprises. They also consider the relationship betwen FDI and trade, investigate the likely impact of the 1992 programme on Japanese investment flows to Europe and conclude with an assessment of the benefits to the EC of inward investment.