Question

What countries want to invest in Japan? Why or Why not? support your answer with research.

Answer 1

Japan is regarded as one of the most developed nation which is very advanced in terms of technology and innovation. The country is also known for its research and development activities, which is allowing it to attract FDI very easily from countries around the world. However, there are certain specific countries which are interested for investing within the country, the data of such country's investment in Japan is as follows:

FDI INFLOWS BY COUNTRY

• Cayman Islands - 18.3 %
• UK -                      18.2%
• France -               12.5%
• US -                      12.4%
• Australia -            11.4%
• South Korea -      8.1%
• Thailand -            5.7%
• Germany -           5.5%
• Belgium -             4.1 %
• Hong- Kong -        4%

The primary reasons for such countries to invest in japan includes :

• Third largest economy in the world and is having very good purchasing power along with strong domestic demand.
• Leader in technological innovation and R&D, leader in number of patents in the world.
• Stable and steadily growing economy
• Investor investing in this country can have access to other Asian market very easily, due to its geographical presence.
• A stable political system can be found with good business environment for business and investors.
• Overall a good and safe investment over the long run.

However, there are certain reasons as well which may make not make Japan a attractive investment destination, it includes:

• Higher regulation
• Mismanagement of public finances and deflation
• Lower real estate prices with prolonged deflation in prices.