(Source: HSBC Holdings plc) Japan's foreign direct investment was initially a way to circumvent trade restrictions. Firms increasingly looked abroad to take advantage of cheap labour and robust emerging-market growth. While capital flows have been volatile, Japanese foreign direct investment (FDI) has been a one-way street over three decades. In the mid-1980s, Japanese companies ramped up US manufacturing in response to rising bilateral trade friction and a strengthening yen. In the early 2000s,...
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