Analyzing Japanese Firms’ Market and Nonmarket Strategies in Asia

Despite the lingering effects of the regional currency crises in the late 1990s, and Japan’s stubborn economic affliction, the Asia-Pacific economies continue to be among the most attractive markets in the world. The track record of these newly industrialized countries, both before and after the crises, China’s phenomenal growth rates, and the widespread regional trend of economic liberalization speak for themselves. But the ups and downs of East Asian markets have forced Japanese, American, and European firms to rethink their strategies. Some firms responded by increasing investments in the region, hoping to snatch up distressed assets that will strengthen their position to profit from renewed growth. Other firms are concerned that excessive reliance on Asia has made them vulnerable. As a result, they have sought to diversify their operations to position themselves in newly emerging markets in Latin America, Eastern Europe, and elsewhere.