This paper considers the impact of global production sharing on technological transfer across countries. In the beginning of this century, China’s small local firms chronically suffered from harsh price competitions within domestic markets. Some emerging firms of the mobile phone industry, however, sought to escape from such low-end competitions by developing supply chains with firms from advanced economies. Meanwhile, those of the motorcycle industry opted to migrate their supply chains to uncultivated markets in growing Vietnam. The study shows that these contrasting globalization strategies led to completely different outcomes, elucidating key determinants of firms’ sustainable development.
This article conducts an analysis of the effects of the development of the ICT (Information and Communication Technology) trend on economic activities, which has been accelerating the offshoring of manufacturing and service activities. One of the effects is the increase in alliances of firms. The results of our investigation reveal that Japanese firms need to adjust to this trend by promoting joint development with foreign firms. In addition, Japan should create a startup ecosystem where ICT firms are actively established.
This study, through panel data regression analyses on the determinants of the rates of foreign direct investments (FDIs), explores differences in the FDIs towards tax haven and non-tax haven from the U.S. and Japan. The regression result implies that, while Japanese multinationals have not succeeded in making the most use of tax haven in their FDIs compared with those in the U.S., they should have strong incentive to utilize tax haven considering the recent stagnating rates of return from FDIs since 2010 possibly posed by quantitative ease in the U.S., Europe, and Japan.