We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Japan Foreign Direct Investment - Research Paper Example

Comments (0)
In conventional terms the concept of foreign direct investment is the movement of capital resources from one location to another often with the involvement of multinational corporations. There have been a dramatic rise in the flow of capital especially among the countries of the OECD of which Japan is a part…
Download full paper
Japan Foreign Direct Investment
Read TextPreview

Extract of sample
Japan Foreign Direct Investment

Download file to see previous pages... The behavior of exchange rates on the international capital market has a significant bearing on the quantity of capital resources that can be marshaled by multinational corporations to enable them carry out investments in the host countries.
A country's currency is said to have undergone depreciation if there is a general fall in the value of the country's currency relative to the main value of another country's currency. Within the context of this essay, the Japanese Yen can undergo a depreciation against one of the leading currencies such as the US Dollar or the Euro if its value falls in relative terms to any of them. Suffice to cite a hypothetical illustration to buttress the foregoing point. Should the Japanese Yen fall against the United States Dollar by say 25 percentage points then the most likely impact is that cost of production by another hypothetical corporation will be significantly lower by 25%. The resulting low cost of the Yen can serve as an incentive for investment because a would be corporation will have to pay low cost for wages in addition to the prevailing low cost of production relative to what it will be in the United States. This phenomenon of attractiveness due to exchange rate differences among countries is known as the relative wage concept (Froot & Stein, 1991).
However, this latter assertion ought...
llel between the significant changes in the relative costs of production across both the United States and Japan and above all this should not in any way be altered by any overt or covert changes in either the cost of production or the wages in Japan where this investment will be taken place.
In addition, the overall relevance of the relative wage factor will become negligible in the event of an advent of an anticipated movement in exchange rate. This has to do with either a direct or indirect rise in the cost of carrying out an investment in the host nation in this case which is Japan. The point that should be noted here is that in the most conventional form the factors that fulfill the interest rate parity are consistent with risk-adjusted rates of return in both the United States and Japan. Any shift in any of the above mentioned factors can change the entire course of a foreign direct investment stream.
In a deeper sense the effects of changes on the foreign exchange market on investments are more profound on multinational corporations. Citing again the instance of a decline in the value of the currency of the host country relative to the investing source country, it is worth stating that should this situation of depreciation in the value of the host country's currency then the potential impact can be a significant rise in the wealth of the multinational corporation in relation to the host country. By this leverage the investing multinational corporation is better placed to engage in robust bidding for assets in the home country in view of the fact that it has relatively stronger capital base to engage in these activities. Of course saying this is an extension of illustrations presented in the preceding chapter with regards to wages and cost of production and how ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
RectorSeal Corporation in Japan
Expansion can be done in a number of ways like foreign direct investments, franchising, licensing etc. Whatever be the expansion strategy every company has to undertake a feasibility study before making any strategic decision.
22 Pages(5500 words)Research Paper
Foreign Direct Investment
Reportedly, DFI encompasses a broad spectrum of investment ranging from investment in existing companies, real estate, equity and capital market and even investment in the development of infrastructure. Acquisition of foreign entities and establishment of joint ventures abroad can also be categorized as DFI.
10 Pages(2500 words)Research Paper
Foreign direct investment
The paper then goes further to discuss the aspects of regional economic integration. In so doing, the paper offers explicit coverage of the advantages and disadvantages likely faced by a country that engages in the regional economic integration. In addition, the paper also identifies and discusses technological advancement and increasing trade as the major forces behind the increasing globalization.
4 Pages(1000 words)Research Paper
Chinese Foreign Direct Investment
The rise of Chinese investments is a recent phenomenon yet it is a controversial one. The speed and the scale of the surge of Chinese investments in Australia have raised the question among Australian community and policymakers of whether Australia should restrict Chinese FDI.
13 Pages(3250 words)Research Paper
Foreign Direct Investment in Japan
However, the recent economic progress of China and other Asian countries has enhanced the worth of investing in these countries. This has resulted in many European and American companies moving their manufacturing and R&D operations to counties like India and China.
4 Pages(1000 words)Assignment
Achieving Food Security in Saudi Arabia with Sustainable Foreign Direct Investment
Saudi Arabia is one of largest nations in the world with an area 870,000 sq mi. It is located in Western Asia, and it is the 2nd largest Arab nations following Algeria. The population of the nation is estimated to be 29 million and a majority of them are young people.
19 Pages(4750 words)Research Paper
Foreign direct investment
Liberalization of overseas investment regime is an essential part of an expansion of FDI. FDI as a growth-augmenting constituent has received great interest from developed nations in general and less developed nations in particular. It has been an issue of great concern for several economists regarding how FDI influences economic growth of the host nation.
24 Pages(6000 words)Research Paper
Achieving Food Security in Saudi Arabia with Sustainable Foreign Direct Investment
Under nutrition, as well as chronic hunger, mainly arises from widespread poverty. Individuals who are poor cannot afford to buy food. Hungry households use more than half of their income to purchase the
19 Pages(4750 words)Research Paper
Foreign Investment Disputes
In this respect, technology, market access, growth, poverty reduction and the FDI outcomes of a country are extremely significant. Other aspects such as damages to the environment, regions and local capabilities are considered to be negative in
16 Pages(4000 words)Research Paper
Foreign Direct Investment & Exchange Report
In conclusion, FDI may be beneficial to countries. It also has many potential risks. Despite having risks, it is worth taking a chance since the risks are reversible through financial transactions. To enhance economic growth, it is crucial for countries to encourage both foreign and domestic investment through creating a favorable investment environment.
3 Pages(750 words)Research Paper
Let us find you another Research Paper on topic Japan Foreign Direct Investment for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us