ABSTRACT

Japan External Trade Organisation (JETRO) was founded in 1958 under a special law by the Japanese government, which has a 100 percent share of the capital. JETRO's main activities in the field of promoting investment abroad include: putting on file Japanese enterprises that have interests and investments abroad; publishing the list of such enterprises; and consulting on overseas investment for Japanese companies. In accordance with the growing interest of European business circles in Japanese direct investment in Europe and in Japanese companies, management techniques, JETRO conducted two studies of Japanese production companies in European countries. Japanese affiliates have problems with local components manufacturers and suppliers in respect of delivery time, quality, and delivery terms. One way for Japanese affiliates to ensure a stable supply of parts at a certain quality level is to provide technical guidance or to lend production equipment to local manufacturers and thus to develop a mutually beneficial relationship between the parts supplier and the assembler.