Article Abstract:
Japanese companies have dramatically increased their level of manufacturing investment in Europe. Since 1983, the number of Japanese companies with manufacturing facilities in Europe has quadrupled from just 157 in 1983 to 676 in 1991. The UK has been the principal beneficiary of Japanese manufacturing investment, accounting for approximately 40% of total volume. France, Germany and Spain have been the other locations of choice for Japanese companies seeking manufacturing sites in Europe. The electronics and electrical appliances sectors account for a fourth of Japanese manufacturing activity, with the chemicals and vehicle production sectors also contributing a substantial amount of Japanese investment activity. According to a survey of Japanese companies, the principal considerations in site selection were the quality of the labor pool, distribution logistics and good infrastructure.
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Article Abstract:
Foreign firms seeking equity in a Japanese corporation face a number of obstacles. Foreign companies wishing to invest in a Japanese company must first go through a long and cumbersome process of securing permission from the Ministry of Finance. The widely different accounting and valuation methods of western and Japanese companies also make acquisition difficult. The most important obstacle to foreign acquisitions is the employment-for-life management policy that is widely practiced in Japan. Management-labor relations in Japan are characterized by a high degree of job security and company loyalty, which is different from the employment-at-will practices found in most western corporations.
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Article Abstract:
Several Asian electronics and computer firms have established research facilities in California, showing their concern for their potential inability to develop the breakthrough technologies required for success in the future. Among the first Japanese firms to claim an interest in research in California through acquisition were Toshiba Corp., NEC Corp. and Fujitsu Ltd. However, since the first such deals, almost every large electronics firm from Hong Kong, Taiwan, Korea and Japan has invested in research on the U.S. West Coast. Examples are provided of several of these deals, and the problems such arrangements must overcome to guarantee success are discussed.
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