Offshore attractions
Article Abstract:
The yen's rise against the dollar and high innate costs are leading even Japan's strongest companies to expand overseas rather than at home, and to focus on cutting costs rather than expanding volume. Manufacturing in particular is finding lower production costs in China attractive, and that country drew 42% of all Japanese manufacturing investment in 1993. That expansion also requires equipment from Japan, however, at least temporarily boosting exports. Some other industries have simply switched to distribution.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1995
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Nippon's choice
Article Abstract:
The continually rising yen could mean disaster for Japanese companies and the country's economy as a whole. As the yen rises, the cost of manufacturing and research and development in Japan rises, making Japanese-based companies less competitive with off-shore manufacturers. As a result, Japanese companies are seeking more off-shore product development and manufacturing and may begin to close Japanese operations. This, in turn, could lead to a huge unemployment problem.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1995
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On the chin: no one rues endaka more than Japan's car makers
Article Abstract:
The yen's rapid and continual rise, dubbed the super endaka in Japan, has all Japanese industries worried, but none more so than auto makers. Companies are aware that offshore production is inevitable but hesitate to lay off people in Japan for cultural reasons. As costs of operation in Japan continue to rise along with the yen, drastic measures are expected to become a necessity in the industry. The strategies of Toyota, Honda, Nissan and Mitsubishi are discussed.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1995
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