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The Force of Business: Are Multinationals Policymakers?

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  • Patricia Nelson

Abstract

Multinationals are becoming an increasingly controversial force in the global arena, and Japanese multinationals are among the largest in the world. Japanese multinationals are said to have lagged behind their American and European counterparts in foreign direct investment (FDI) strategies, or more specifically, their production networks in East Asia (Ernst and Ravenhill 2000). They began by setting up export platforms, but only in the mid-1980s did they begin to integrate production within the East Asian region for export as well as for supplying expanding local markets. Much of the incentive to do so sprang from rising costs and worsened economic conditions in Japan, coupled with a search for new markets as nontariff barriers set limits on the volume of Japan's exports to the United States and Europe.

Suggested Citation

  • Patricia Nelson, 2002. "The Force of Business: Are Multinationals Policymakers?," Japanese Economy, Taylor & Francis Journals, vol. 30(2), pages 79-104.
    • Handle: RePEc:mes:jpneco:v:30:y:2002:i:2:p:79-104
    DOI: 10.2753/JES1097-203X300279
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