ABSTRACT
This chapter studies Japanese foreign direct investment (FDI) in Spain in the 2010s and analyses why most of the Japanese companies are located in Catalonia region of Spain. Catalonia has many advantages for FDI, and the most important factors for Japanese firms deciding to locate within Spain is the presence of an investment promotion agencies. According to interviews with companies operating in Spain, support from Catalonia Trade & Investment is highly appreciated. This shows that support from such organisations is a key for a company’s expansion abroad. However, several Japanese companies withdrew from Spain in the 2010s. For Japanese firms, labour market rigidity was cited as a challenge for continuing operations in Spain. Catalonia’s independence movement may also be a risk for Japanese firms located in Catalonia, but it is not a direct factor in considering withdrawal.
