The spatial redistribution of Japanese direct investment in the United Kingdom between 1991 and 2010

Japanese firms have a firmly established reputation as influential foreign investors, originating from the surge of foreign direct investment into North America and Europe during the 1980s. This paper examines trends in Japanese corporate behaviour in the United Kingdom, a key investment destination for Japanese firms, over the period 1991 to 2010. Our ‘demographic’ analysis of Japanese firms' investments includes both investment and exit strategies. It is found that Japanese firms have reconfigured their UK presence in response to a rapidly changing market environment, with an enduring proclivity to cluster, notwithstanding government incentives intended to channel investment towards specific regions of the country.     

Technological Gap and Uneven Accumulation in a Classical Production Model

Two regions are distinguished by their technological capabilities. In autarky, the advanced region accumulates more rapidly. Trade augments both regions' growth rates, but can initially worsen the uneven accumulation. The advanced region's faster growth turns the terms of trade against itself. The growth gap narrows. Yet, trade can never close that gap completely. Further decline in the advanced region's growth rate is arrested by its investment in, and technology transfer to, the backward region to augment the latter's export. Whether uneven accumulation persists depends on how successfully the backward region's indigenous capitalists adopt the more efficient `foreign' technology.     

An Equitable Trust in The Building Industry in 1794

Japanese manufacturing in the developed regions of Europe and North America has been strongly associated with the more competitive sectors of Japan's high growth economy, such as consumer electronics, semi-conductors and transport equipment. During the earliest years of Japanese productive investment in Europe, however, a significant number of projects from Japan's less competitive chemicals sector were being established. These projects, together with those from other chemicals-related sectors of Japan's domestic industry, will be shown to have emerged in response to the widespread concern over environmental and pollution issues which dominated public affairs in Japan during the decade after 1965.     

Output Movements in East Asia: Is There a Regional Factor?

Using Lumsdaine and Prasad's (2003 ) methodology to construct a measure of the common component of industrial output fluctuations with time‐varying weights, this study finds that there is a significant regional factor that explains the movement in industrial production output across countries in East Asia (ASEAN 5 + 3). The cumulated common component for East Asia has very distinct peaks and troughs, with turning points occurring about every three years. Shocks in 2000–2001, coinciding with the bursting of the IT bubble, appear to be very important as there is a very large decline in the common component of industrial production output, larger than that experienced during the 1997 Asian Financial Crisis. Similar to McKinnon and Schnabl's (2003 ) findings, the Japanese economy is important for the region as its industrial production output cycle has the largest weight in the construction of the cumulated common component for the region and appears to be the most similar to it. Nevertheless, China's asymmetry with the cumulated component for the region appears to have been beneficial for the region, especially in the most recent period.     

The political economy of tourism in North Africa: Comparative perspectives

Tourism has become a salient sector in the economic‐development strategies of North Africa, despite the fact that the states of the region have met with varying degrees of success in their attempts to expand and develop their tourism sectors. This article adopts a political‐economy approach to the analysis of tourism in North Africa. Its aims are to highlight the main aspects of the region's political economy that have influenced outcomes in the tourism sector of each country, and then to explain the political dynamics that underlie the tourism sectors of the region. This article asserts that all North African states now have embraced tourism—albeit with varying amounts of enthusiasm—as a key economic industry. It examines the relationship between tourism and economic reform in the region, followed by the political dynamics of the sector, arguing that tourism is a very political affair, but for reasons different than in other sectors of the economy. It concludes with some observations on the strategic and developmental challenges that confront the development of tourism in North Africa. © 2000 John Wiley & Sons, Inc.     

Japan's Growing Outward Direct Investment in East Asia

Japan's outward direct investment (ODI) began to show an obvious expansion since 2005, accompanied by a greater importance in East Asia and in the manufacturing sector. By analyzing the new wave of Japanese ODI, three points are elaborated in this article. First, the recent Japanese ODI did not result in the same industry to be passed from one country to another as elucidated in the flying geese model. Instead, Japan's ODI only promoted the regional divisional of labor in the transport equipment and electrical machinery industries. Second, this study advances the theory of vertical production network by exploring two regional production networks constructed by Japanese ODI, including one between China, South Korea, Taiwan, and Hong Kong and the other between the Association of Southeast Asian Nations (ASEAN). Finally, since Japan's economy has been tightly connected with foreign demand via overseas production, this article argues that any sign of Japan's declining ODI will have serious impact to its domestic economic prosperity. © 2015 Wiley Periodicals, Inc.     

Determinants of Supplier Willingness to Invest in Supporting a Manufacturer's Line

Abstract

This study examines the significance of supplier's expectation of continuity of its relationship with a manufacturer, perception of manufacturer's reputation, trust in manufacturer's credibility, trust in manufacturer's benevolence, and dependence on manufacturer as determinants of its willingness to invest in supporting a manufacturer's line. Data collected from Malaysian and Korean auto suppliers indicate that expectation of continuity of relationship, manufacturer reputation, and trust in manufacturer's credibility are significant determinants of supplier willingness to invest, while supplier dependence and trust in manufacturer's benevolence are not.     

Peace in the Middle East: What does if really mean for Israeli business?

The growing authenticity of the Middle East peace process is as much a product of the realities of the international business community as the efforts by the region's diplomats. The disintegration of the former Soviet Union and the results of the Gulf War have hastened the acceptance of Israel as a world class trading partner. Any meaningful peace should improve the region's living standards, but Israel is likely to be the major beneficiary in the short run. True stability in the region remains the challenge of business.     

Monetary Policy,Vagabonding Liquidity and Bursting Bubbles in New and Emerging Markets: An Overinvestment View

‘Capitalism without failure is like religion without sin’. Charles Kindleberger's book Manias, Panics and Crashes points out that speculation and crises have always been present: the world economic crisis of the 20th century, the South Sea bubble in the 18th century, and the tulip mania in the first part of the 17th century. Starting with the Japanese bubble in the 1980s we take the reader on a tour through 20 years of bubbles in emerging markets and industrial countries which have recently culminated in the 2007/08 US subprime market crisis. We explain the global stock market and real estate booms based on the real and monetary overinvestment theories of Hayek, Wicksell and Schumpeter, arguing that ample liquidity supply originating in the large industrialised countries has contributed – independent from the exchange rate regime – to overinvestment cycles in new and emerging markets around the globe. The policy implication is to keep interest rates not too low for too long in response to bursting bubbles.     

Young Hong Kong managers: Their doubts about 1997

The economic success of Hong Kong—especially when compared to its much larger neighbor the People's Republic of China—has been a source of worry among business leaders in light of the colony's planned reversion back to China in 1997. Young managers in particular are nervous that, under the bureaucratic and repressive dominion of China, economic growth and opportunities will dwindle. How China handles its own affairs, as well as those of Hong Kong, may well affect the region's economy well into the next century.     

Synchronised Business Cycles in East Asia and Fluctuations in the Yen/Dollar Exchange Rate

Because many authors have proposed stimulating the ailing Japanese economy by monetary expansion and yen depreciation, we explore the repercussions of depreciating the yen against the dollar on the other East Asian economies – which largely peg to the dollar. Since 1980, economic integration among Japan's neighbours – China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand – has intensified and (except for China and Singapore) their business cycles have been highly synchronised. These cycles have been closely linked to fluctuations in the yen/dollar exchange rate – through changes in the export competitiveness, inflows of foreign direct investment and intra‐Asian income effects. We show that a major yen devaluation would have a negative impact on incomes in other East Asian economies and that it is not a sensible policy option for Japan.     

Direct foreign investment in japan as a means of market entry: The case of European firms 1

Japan, one of the world's largest and strongest economies, attracts a tiny level of inward direct investment. This neglect is particularly true of European multinationals. This article examines a sample of European companies which have Japanese manufacturing affiliates, to assess direct investment as a means of access to the Japanese market. It examines the objectives and strategies of entry and evaluates the outcome in terms of successful penetration of the Japanese market. The joint venture route is a preferred means of initial entry and the research allows evaluation of the advantages and disadvantages of this mode of entry to the Japanese market.     

Transpacific Trade Imbalances: Causes and Cures

This paper explores the causes of the transpacific trade imbalances using an empirical global model. It also evaluates the impact of various policies to reduce these imbalances. We find the fundamental cause of trade imbalance since 1997 is changes in saving‐investment gaps, attributed to the surge of the US fiscal deficits and the decline of East Asia's private investment after the 1997 financial crisis. Our simulation results show that a revaluation of East Asia's exchange rates by 10 per cent (effectively a shift in monetary policy) cannot resolve the imbalances. We find East Asia's concerted efforts to stimulate aggregate demand can have significant impacts on trade balances globally, but the impact on the US trade balance is not large. US fiscal contraction is estimated to have large impacts on the US trade position overall and on the bilateral trade balances with East Asian economies. These results suggest that in order to improve the transpacific imbalance, macroeconomic adjustment will need to be made on both sides of the Pacific.     

Leadership and culture in the MENA region: An analysis of the GLOBE project

This paper focuses on leadership and culture in the Middle East and North Africa (MENA) region, using data from the GLOBE Project. The results show that cultural practices are manifested by higher in-group collectivism and power distance, whilst cultural values are represented by a common desire for higher performance and future orientation. Examination of the leadership prototypes shows a preference for honest, just and inspirational leadership that encourages loyalty. Further examination of the leadership prototype using cluster analysis produced four sub-clusters of leadership profiles. These revealed the similarities and differences among the MENA region's leadership preferences. Opportunities for further research and implications for managers were discussed.     

Japanese multinationals in the post-bubble era: new challenges and evolving capabilities

Since the bursting of Japan's bubble economy, from 1990 onwards, Japanese multinational companies (MNCs) have faced new competitive challenges and questions about the management practices on which they had built their initial success in global markets. Japanese engagement in the international economy has undergone a number of phases. In the period before the Second World War, Japanese companies learnt from foreign MNCs in trading, shipping, and manufacturing, frequently through strategic alliances, and leveraged their capabilities to succeed in overseas and largely Asian markets. In the immediate post-war decades, during the Japanese ‘economic miracle’, there were notable examples of MNC investment in raw materials and labour intensive production, but both inward and outward foreign direct investment were not significant. Japanese companies achieved leadership in management and technology, in order to support a strategy of export-orientated industrialization. Changes in government policies in the developed economies of the US and Western Europe forced leading Japanese manufacturers to convert themselves into MNCs and to transfer their home-grown capabilities to overseas subsidiaries. The period after 1990 marked declining Japanese competitiveness and it asked questions about the ability of Japanese MNCs to be more responsive and global in their strategies, organization and capabilities.     

Strategic inertia,financial fragility and organisational failure: The case of the Birkbeck Bank, 1870–1911

This article looks at the key factors behind the failure of the Birkbeck Bank in 1911. Using a wide range of primary source material, it charts how the Bank emerged from its philanthropic roots as a mutual building society in the 1870s to go on and enjoy spectacular growth during the late nineteenth century before eventually faltering and failing in the early twentieth century. Throughout the analysis, particular attention is given to the investment decisions taken by the Bank's management and the impact that these had on the Bank's fortunes. In addition, the article also looks at the extent to which the Birkbeck Bank's overall business model differed from those of other banks in this period. Ultimately, what it shows is that the Bank's failure to modify its investment strategy quickly enough in response to changing market conditions – most notably the fall in the value of Consols and other gilt-edged securities – proved to be the decisive factor in its eventual collapse. For this reason, the article contends, it is appropriate to categorise the 1911 Birkbeck Bank failure as one caused by strategic inertia rather than excessive risk-taking.     

Expansion of Japanese Retailers Overseas

Abstract

There have been a number of studies of foreign retail entry into Japan but few that consider the moves of Japanese retailers to other Asian countries. Nonetheless expansion into Asia of Japanese retailers, notably since the early 1990s, has been considerable. Many have been attracted by the large size of several national markets. Large Japanese trading houses have played a significant direct and indirect role in the international moves of Japanese retailers. China has become the major place of investment for Japanese retailers with 21 retail companies established by Japanese firms. The history of the internationalisation of Japanese retailing shows three phases of development. A first phase is characterised by department stores, a second phase is a slowing of activity in the late 1990s and a third phase of rapid expansion is presently evident. The key to the current phase is the establishment and strength of non-retail supply firms in the same East Asian region into which retailers wish to expand.     

African equity markets : Testing Latin America's path

Equity Market opportunities and Sub-Saharan Africa have long been mutually exclusive propositions. However, recent developments are hinting at future profits to be reaped in the region. By year-end, over a dozen countries will have formal capital markets, and a handful more are in the process of setting up stock exchanges. Kleiman and Morrissey provide an overview of recent reforms and trends that will shape the region's capital markets into the next century.     

Investigating a three-way interaction of manufacturer control,retail control and dependence on salesforce performance. Does the role of frontline employees matters ?

Dependence and retailer control on manufacturer's salesforce imply several challenges in retail channels. This research addresses how they affect the relationship between manufacturer control and salesforce performance due to the high level of salesforce investment. We conduct a moderated-moderation analysis.We investigate the moderating roles of retailer control and dependence on the relationship between manufacturer control and salesforce performance. To take into account the importance of the store frontline employee, we next studied the influence of his perception of the salesforce on the sales control systems in retailing. First, our results show that salesforce performance is influenced directly by manufacturer process control and, retail control and dependence moderate this relationship in two-way and three-way interactions. The salesforce subject to process control by manufacturer improves his performance under strong retailer outcome control while the manufacturer is in a low relative dependence. Second, employee perception of the salespeople mediates the link between manufacturer process and retailer outcome controls. We test our model in two studies and theoretically integrate retailer control, dependence, and employee perception of the salesforce, in the sales control literature. In the end, we provide practical implications to further improve salesforce performance and employee perception of the salespeople and future research suggestions.     

Export Involvement and Channel Conflict in a Manufacturer-Intermediary Relationship

Numerous articles have been published regarding the strained relationships between highly involved export manufacturers and their international intermediaries. While channel conflict is frequently cited as a major reason for such strained trade relationships, few research studies examine the relationship between a manufacturer's export involvement and channel conflict. In this paper, we develop hypotheses linking the three major domains of export involvement to the initial stages of channel conflict. The results indicate that a manufacturer's conflict with its principal international intermediary decreases with greater manufacturer dependence on the principal intermediary, increases as resources are committed to exporting, and decreases with the manufacturer's foreign market knowledge.