Japan-Emergence of New FDI Destination In Japan

Running head: FDI IN JAPAN
FDI IN JAPAN
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
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Japan-Emergence of New FDI DestinationJapan-Emergence of New FDI Destination In Japan1
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FDI...................................................................................................................................................2
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Japan-Emergence of New FDI DestinationJapan-Emergence of New FDI Destination In Japan2
FDI
Foreign direct Investment or FDI occurs when a company or the individual owns more
than ten percent shares in the foreign company. However, just holding ten percent doesn’t give
the individual or the company any kind of ownership right over the company neither did it allows
them to be a part of the management. Therefore, government track investments made in their
country’s business. In the year 2018, it has been recorded as per the United Nations Conference
on Trade and Development that there was a global foreign direct investment of $12 trillion. The
FDI got down in the year 2017 by twenty percent ("Why Foreign Direct Investment Is
Plummeting", 2020).
It has to be noted that FDI is very important for the market emerging and for the
countries which is developing. It enables the capital to transfer in anywhere in the world, thereby
it is pretty beneficial for the investors and the global economy as a whole. Investors can seek best
return with the least risk. The negative factor about the FDI will be that the foreign investors may
strip the value of the business without actually adding any.
Japan-Emergence of New FDI Destination
It has been noted that the FDI is emerging and flourishing in Japan and it has started
increasing since 2011. In 2017, the inward FDI has hit the highest record. Japan being the
world’s third largest economy, is letting and making way for the outsiders and foreign investors.
They are making the best possible environment in order to attract the foreign investors. Its
creating the lucrative market potential and therefore provide high value added capital and the
highest rate of return. ("Japan Foreign Direct Investment", 2020)