Post-war Japanese Foreign Direct Investment Analysis

foreign direct investment is a kind of investment behavior which refers to a country's capital for its investors to the country of production or management, and master some operational control rights, in the background of economic globalization, the capital flows between countries of trend has become increasingly apparent, foreign direct investment is the main form of cross-border capital flows, and it is also an effective way for a country to obtain raw materials, seeking knowledge, lower costs, economies of scale, stability, and other domestic customers, its function is very important and has far-reaching significance.Foreign direct investment theories has been researched for a long time, in the current there are three kinds of theories in this regard The first is the eclectic theory of international production, which is a broader application of theory, the theory suggests that foreign direct investment enterprises, which can use that ownership advantages, location advantages and internalization advantages, but only when a company also have these three advantages, it is fully equipped with the conditions for foreign direct investment. The theory can also refine the monopolistic advantage theory, location theory and the theory of internalization. The second is the theory of comparative advantage, namely, that foreign direct investment should from the industries which have been or will be trapped in comparative disadvantage industries, which in turn marginal industry. The third factor is the investment portfolio theory, the key point of this theory is: any type of foreign direct investment in the production are induced by elements in the direct investment and indirect effects induced by the combination elements.Japan is one of the world's largest foreign direct investment countries, and also, is one of the world's major economies, at the end of World War II, it quickly developed the domestic economy from the brink to the fastest growing economies in the world. We can say that a large extent, dependent on foreign direct investment. Foreign Direct Investment affects the Japanese economy in many ways, mainly in avoiding the escalation of trade friction, solving the crisis of domestic resources and so on. We can find that Japan has accumulated rich experiences and lessons than other countries in foreign direct investment; particularly on the rapid economic developing countries has a positive significance.The process of Japanese foreign direct investment started from the Second World War and the development can be broadly divided into three stages: the early 50s to early 70s early stage; the early 70s to early 90s, high-speed development stage and the since the early 90s ,which is called adjustment period. At each stage, the country's foreign direct investment has its own characteristics and priorities. Japan's active foreign direct investment policies are closely related with the country's situation. For the macro reasons: the small location, severely damaged by war, limited natural resources, population, etc.; and for the micro level, monetary policy, adjustment of industrial structure, etc., also influence the implementation of foreign direct investment policies.Japan's domestic industry transfer is achieved by foreign direct investment, which through strategic mergers and acquisitions, transfer of operating positions, coordination of regional headquarters operations, sales, etc. thus to realize the perception of global production and services to promote industrial development, further improve the domestic industry standards and to ensure products in the world of Japan's competitiveness, while promoting continued economic structure adjustment and tends to upgrading and reasonable. Meanwhile, foreign direct investment developed the foreign trade and technology transfer, speeded up the internationalization of capital in the world optimizes resources; improved the international competitiveness of Japanese companies. Of course, in the development process of foreign direct investment, it also had a negative impact to Japan's economy; one of the worst impaction is the "industrial hollowing out" of the form. To reverse this unfavorable situation, the Japanese foreign direct investment, in recent years, has been adjusted and improved, taking more powerful measures such as adjustment of investments to increase investment in developing countries, adjustment of investment and regions so on.China is the largest developing country in the world. In the three decades of reform and opening-up period, it got rapid growth in economic output, the total 2008 GDP, which ranked third in the world, especially in the 21st century, China's economic growth shows good posture. In the global financial crisis China's economy got generally praised by the international community. With the overall economy is growing, foreign direct investment is also growing. However, due to late start of China's foreign direct investment, small scale, inevitably, there are still some problems, so we should learn from advanced countries for further relevant experience. China's current economic development situation of the Japanese economy and eighties have some similarities, especially in face of the currency appreciation press in the increase of resource depletion and the confliction of resource consumption and the rapid development of domestic productive, these factors will further promote direct foreign investment boom. In this context this article is, through the study of Japanese foreign direct investment, in order to better promote foreign direct investment in China provide a useful reference.