Investment In Japan
Japan is one of the most desirable countries in Asia that offers investors a realistic and modernized appraisal of Japan as a place for foreign direct investment. With its considerable beginning advance start in economic expansion and progress was for a very long period of time the accepted country in Asia for European companies to establish their operations in the region. However, in recent years other countries such as China and India have caught up and are now challenging Japan in areas where it had long been the unquestionable regional leader. For continued economic growth, Japan needs foreign investors for diversification and for fund generation
Japan And Companies
Many companies have shifted their production facilities, headquarters and Research and Development facilities out of Japan and into other countries because of the extensive damage caused on March 11. This natural disaster played havoc with the Japanese and caused an unfavorable on foreign direct investment in Japan. The government of Japan knows the advantages of foreign direct investments which have instilled a sense of urgency that practical actions are urgently needed to induce investors in Japan, at the same time hold onto the investors who have already invested in Japan. Besides a reduction in corporate taxes, the Government of Japan is introducing a succession of measures under its Inward Investment Program.
Wide-ranging and all-inclusive Special zones and the improvement of its immigration procedures have been brought in to make Japan a more attractive country to invest in. Japan has also started consolidating its connections to the world economy by moving ahead rapidly with measure on Free Trade Agreements with several countries, most specifically the European Union. While not receiving as much priority as the other countries in Asia, Japan still retains the lead in several sectors which provides exceptional opportunities for investors. This paper assesses the reasons that foreign companies continue to invest in Japan, including the viewpoint of the foreign community on several measures adopted by government and whether they favor foreign direct investments.
To comprehend how foreign investors think when making investment decisions, relevant quality data was collected with European firms and connected entities. Foreign direct investment is not the sole reason for domestic investment opportunities, but is also viable for providing greater investment opportunities in the region. Japan is being challenged by several countries that involve cost cutting, labor intensive production which is usually the main attraction for foreign to invest in any country. The bursting of the Japanese economic bubble during the early 1990’s stunted the growth of Japanese thereby providing opportunities for foreign investors.