Looking back at the economical and financial strategies of the late XX century, one can hardly believe that the ideas of globalization have been suggested so recently. Indeed, a lot has been done; however, there are still many projects that need to be implemented as soon as possible.
Since trade in some of the countries, Japan being among them, was guided by completely different economical principles, it is crucial that the FDI trends should be updated according to the new policies and that at the same time the specifics of the economy in foreign countries should be taken into account.
It must be mentioned that in the past fifteen years the course of the FDI, or foreign direct investment, policy could be described as accumulating, since FDI has been obviously aimed at increasing the amount of inflows and outflows, which helped increase the amount of total accumulated value of foreign-owned assets.
In fact, even at present, FFDI targets at the developed countries, such as the United States, the states of Europe and Japan. However, judging by the emerging trends, the owners of the FDI shares seem to be taking great interest in China.
Therefore, it can be concluded that the change in policy of the FDI concerns mostly the target countries; currently, a lot of outflows concern China.
Hence, it can be concluded that in the next fifteen years, the FDI will be targeted at developing countries, since the costs for trading with these states will be considerably lower than the ones for investing into such states as the UA, and the countries of the EU.
The framework for the FDI has already been developed, and, according to the existing data, more developing countries are going to become the partners of the stockholders of the FDI program.
As Hansen says, the National Vision Policy that embraces the time lapse between 1991 and 2020 is aimed at building a Multi-Media Super Corridor (MSC) that will help reach even such distanced places as Malaysia (Hansen 326).
Apart from the development of FDI and the factors that influence both the domestic and the foreign trade policy of China, the outer factors that the environment of the global markets creates should be taken into account.
It is obvious that in the present-day swiftly developing world, Japan needs either to adjust its own policies towards the course of globalization, or drop the attempts to enter the international market.
To understand the issue better, one should take a closer look at the case study concerning the introduction of Wal-Mart into Japan. As the study shows, the largest retailer in the USA (Winadi) uses such strategies as offering lower prices and meeting local needs to achieve its objectives.
Choosing a joint venture strategy to enter the Japanese market, the Wal-Mart representatives took great risks by buying 6% shares. Though the given technique might seem somewhat risky, it still proved efficient.
However, it is worth admitting that Wal-Mart should have taken the specifics of the Japanese culture into account before introducing its services; cultural issues were the point at which the whole idea fell apart (Mun 16).
It was also crucial for the Wal-Mart specialists to figure out that “Walmart entry to Japan as General Supermarket/Department Stores retail model means that it’s entering a relatively small market, at least when compared with other forms of retail in Japan” (Winadi).
Therefore, Wal-Mart owes its success in Japan mostly to a careful assessment of the Japanese market and its role in the global market system.
Speaking of the idea that with the tremendous growth of the emerging markets, countries like China will become the major providers of FDI over the next 20 years, one must admit that at present, Chinese economy does not seem to coordinate with the globalization trends.
However, with the help from the world economic leaders, China will be able to become the FDI major asset.
Works Cited
Hansen, Michael W. Transnational Corporations and Local Firms in Developing Countries: Linkages and Upgrading. Copenhagen, DA: Copenhagen Business School Press DK, 2006. Print.
Mun, Hwi-ch’ang. Global Business Strategy: Asian Perspective. Singapore: World Scientific, 2010. Print.
Winadi, Albert. Walmart in Japan. 28 Sep. 2012. Web.