Foreign Direct Investment Opportunities and Strategies in Japan

Abstract

Japan is a wealthy nation and possesses the second largest economy in the world along with the largest pool of personal savings and foreign exchange reserves. Yet its stock markets have been in nothing less than a depression for over a decade. This article looks at several opportunities for foreign direct investments in Japan. Among the sources of opportunities are: divestitures of noncore operating units; investments in financially troubled enterprises; the establishment of partnerships to refinance and reengineer the operations and global reach of existing Japanese companies; and investments in small and medium-sized high-technology companies.