ABSTRACT
This chapter deals with European Economic Community (EEC)-Japanese economic relations. It examines how Japan serves the European market through exports or through local production. The chapter looks at the bilateral relation from a wider, macro-economic point of view. The main emphasis on Japan external performance rather than the EEC’s direct investment and export to Japan. The large increase in foreign direct investment (FDI) in the transport equipment sector during the period 1978–1982 is mainly due to two Nissan investments. The initial investment by Nissan amounts to $50 million and will provide direct employment to 500 persons. In France, Japanese FDI during the period 1976–1980 accounted for approximately 1.5% of total FDI flows, and figures of a similar magnitude will be found for other European nations. The Anglo-Japanese negotiations over the TNC also had positive effects on Japan’s trade relations with France.
