Direct foreign investment and the activities of multinational corporations are new dynamic elements in the international economy. This book identifies, theoretically and practically, a Japanese model of multinational business operations which has characteristics differing from the American or "anti-trade oriented" type, and casts light on important policy implications concerning direct foreign investment and multinational corporations. By developing a macroeconomic approach to direct foreign investment, instead of the prevalent explanation from the viewpoint of business administration and industrial organisation, this study adds to current knowledge of the multinational corporation. It endeavours to bridge the gap of separated treatments between international trade and foreign investment, and presents an integrated theory from the viewpoint of a dynamic reorganisation in the international division of labour. The book also includes two introductory surveys on the survey of international division of labour and foreign investment.
1. Issues of Direct Foreign Investment 2. International Division of Labour: Basic Theories for Trade and Investment 3. The Theories of Foreign Investment: An Overview 4. Direct Foreign Investment: Japanese Model versus American Model 5. A Macro-economic Theory of Direct Foreign Investment 6. International Trade and Foreign Investment: Substitutes or Complements? 7. Transfer of Technology to Developing Countries: Japanese Type versus American Type 8. Direct Foreign Investment to Developing Countries: The Issue of Over-Presence 9. Direct Foreign Investment between Advanced Industrialised Countries 10. Japan’s Resource Security and Foreign Investment in the Pacific 11. Giant Multinational Corporations: Merits and Defects