ABSTRACT
The economic crisis in East Asia has reduced the attractiveness of that region for Japanese investors, but due to very strong links in both trade and investments, Japan is actively pursuing policies to stimulate Asian economies so as to reduce the burden of its own multinational companies. Products produced offshore by Japanese-affiliated subsidiaries in Asia and imported into Japan have accounted for a substantial part of rapidly increasing imports of finished products entering Japan, including copy machines, 35-mm cameras, calculators, fax machines, and car radios. Companies that are going to expand their investments in China include all the big and well-known corporations in Japan. The primary focus of Japanese investment in Korea has been on the service industry, particularly hotels, instead of manufacturing. East Asian countries have taken a number of measures as part of their economic restructuring program supported by the International Monetary Fund.
