The Dynamics of Overseas Business Activities by Multinational Companies from Japan

At the beginning of the 21st century, the new economic order settled at international level is based on the intensification of the activities of multinational companies (MNC) on global markets. Japan – the third world economy in 2010 – registers outstanding economic results due to its strong connection to the current of the globalization of international affairs. The issue of understanding the key role of Japanese MNCs in international business received a great deal of attention in recent years. We found that Japanese firms expanded their overseas production from 3.1% in 1986 to 16.3% in 2005 and 17% in 2009. Although MNCs are a minority in terms of the number of firms, they nevertheless dominate the Japanese trade. In recent years, Japanese firms have become more active in developing overseas activities by establishing local subsidiaries and acquiring local companies. Therefore, cross-border Mergers & Acquisitions (M&A) appeared to be a very useful tool through which Japanese MNCs expanded their tentacles worldwide. Despite the devastating effects of the great East Japan Earthquake, statistical data released by UNCTAD show that Japan will again be, on the long run, a leading investor for outward FDI. Therefore, Japanese MNCs will continue to play a key role within international business environment.