Japanese foreign direct investment generally, and manufacturing investment (JMI) in particular, has displayed a strong growth trajectory in the 1970s and 1980s. As Dicken notes in Chapter 2, while there have been geographical variations in its destination, all major world regions have been the recipients of such investment. While the EC, for example, has lagged behind North America, as Morris’s chapter on JMI in the EC illustrates, it has nevertheless witnessed extremely fast growth particularly in the late 1980s which, for various reasons, Morris argues will continue into the 1990s. A recent study by Julius (1990), for example, illustrates that Japan had the biggest percentage growth in outflow between 1983 and 1988. Moreover, whereas other major OECD countries were also experiencing substantial inward flows in investment between 1980 and 1988, those into Japan were extremely low.