Japan’s Direct Investment In The United States From The Global Production Network Perspective And Its Experience To China

Since 1950s, Japan’s have started to direct investment in American,but its development was very slow until 1970s.Between these 20 years,the total was less than 2 billions because that Japan still had its own advantages in trade with American by virtue of its rich labour and the depreciation of yen.At 1980s,with the scale of trade increased and more barriers between Japan and American,their deficit was larger than before. a large number of Japan’s companies started entering into American’s market though direct investment due to American safeguard its interests by carrying out economy sanction,for example,trade barriers,forcing Japanese yen appreciation and so on.Many Japan’s companies invest in American’s real estate by buying lands,building hotels and luxury houses and so on.That drive a great mass fervor about investment to American.Though the bubble of Japan’s economy was broken and the growth of economy was very slow.there didn’s have a large decrease in the Japan’s direct investment.There even have increase after the 2008 finance crisis with the revive of Japan’s economy.In 2013,The total of Japan’s direct investment in American was up to near 135 billions dollars and created a historical record with a increasing of 10.4% than last year.Also its rate remain two digits for three consecutive years.At this background,Japan’s investment in American stopped decreased and started increasing and its investment,in 2013,was up to 43.7billions dollars that account for 32.4% of Japan’s total investment.Therefore,American is still Japan’s important destination of investment.So those old reseans,like trade barriere and yen depreciation,can explain this phenomenon.With the development of the technology of infermation and correspondence,in particular the emerge of internet and electronic business,the cost of deal and transport is decreasing largely in the internal of various organizations.Meanwhile,the development of product technology enhance the divisibility of the process of production and the divisibility creat advantageous condition for the division of production in global.Therefore,there is another new threory of explaining direct investment in global-Global Production Network.Global production network also provide a new view to analyze the Japan’s direct investment.Meanwhile,there are many large financial group with high strength,in particular,the six that have a several decades investment history in American by local sale and local product.These large companies have established a integral sale and product network.At the beginning,the aim of Japanese investment in American was to avoid American’s trade barriers and extent its market shares in American.With the revive of Japan’s economy and the improvement of technology,on the one hand,Japan shift its marginal industry to the countries with rich cheap labor force,for example,the Asia area;On the other hand,Japan exert its best effort to extent its global market,for example,China and Europe.That drive Japan to form its special and perfect global production network and enable Japan overcome its constrain in natural resource and deploy resource in global area and help the development of company.Therefore,this paper will introduce the Japan’s direct investment since 21 century from the perspective of global production net work. First,this paper start with the introduce of the theory of global production network and explain the development of this threoty and its framework of research.Second,in order to have a good view about the development of Japan’s direct investment in American at the background of global production network,this paper introduce briefly the whole development of Japan’s direct investment since 21 century.Third, this paper put its important point on the investment from global production network and introduce how Japan built its sale and production network by local sale and production which lay a fixed foundation to improve its level of global production network.In the end this paper, from experience,give a idea in what we should do to force direct investment in American through learning from Japan,therefore make sale and production more perfect and enhance the level of China in global production network.