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I've read that Japanese investment is helping to improve the economies of several countries worldwide. Some even say that as long as Japan has this cash surplus, a specific country's economy will do well. Why is Japan driven to invest a lot of money (FDI and FII) in foreign countries?

2007-03-11 11:55:21 · 2 answers · asked by Senthil N 1 in Social Science Economics

2 answers

Japan is driven to invest a lot of money through Foreign Direct Investments and Foreign Institutional Investor for the same reason China and India are: Increase profits and influence the financial and political position of their country and others.

Venezuela owns Citgo; Nestle was founded in a foreign country, and its headquarters are in Vevey, Switzerland.

The U.S. invests in other countries, too: China, Russia, India, England, etc., etc.

2007-03-11 12:43:33 · answer #1 · answered by Baby Poots 6 · 0 0

Political leverage. If I give you money, at a later time when you come to a crossroads, I remind you I gave you money to get this far, and thus you are obliged to take the path I choose for you.

2007-03-11 13:06:09 · answer #2 · answered by Anonymous · 0 0

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