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(From Journal of Japanese Trade & Industry (JJTI))
Direct investment in Japan by foreigners - share acquisition and long-term lending to Japanese businesses - soared 90% in FY 2004 from the previous year to a record \4,026.5 billion, attesting to the stepped-up "Buy Japan" activities by foreign capital centering on US funds. The active buying has been prompted by the global economic recovery and a prolonged fall in Japanese land prices, which makes the value of corporate Japan and its share prices look attractively low. Meanwhile, direct investment in other countries by Japanese businesses in the year came to \3,800 billion. As a result, foreign direct investment in Japan eclipsed Japanese direct investment abroad for the first time.
The high-profile acquisitions of Japanese businesses by foreigners include the purchase of DDI Pocket by US investment fund Carlyle Group and Aoba Life Insurance by Prudential Financial of the United States. In addition, foreigners aggressively bought a number of hotels and golf courses. Of the total ...