Rene Haak Boeken

Both proponents and opponents of globalization view it as a process that transcends national borders, supported by key features such as advancements in information technology, the rise of global companies, the internationalization of financial markets, and the deregulation of services. However, the increase in regional economic activity is also noteworthy. As multinational corporations expand globally, regional networks emerge within the trading system, indicating that globalization can lead to a spatial concentration of economic activity. The 1990s and early 2000s saw significant structural changes in East Asia, with South Korea achieving developed status, Southeast Asian economies integrating, and China becoming a manufacturing hub. This raises important questions about the connections between multinational corporations' global strategies and their regional operations, the emergence of subregional strategies to leverage China, the transferability of business practices to overseas operations, and the strategic directions of enterprises from Japan, the U.S., East Asia, and Europe. This book examines these questions by analyzing the structural features of the East Asian economy and the strategies of multinational corporations, drawing on current research from European, Australian, and Japanese scholars to explore various aspects of regional strategies in a global economy.

Despite the dynamic growth of its economy over the last 20 years, China still has a long way to go to catch up with Japan. In commercial and technological terms, Japan is still the dominant economy in East Asia and is still the leading source of product, production and management innovations in the region, especially in the automotive and electronic industries. However, China is closing the gap year by year. The development of bilateral foreign trade, the increase of Japanese FDI and ODA towards China, and intensified financial and technical co-operation illustrate the considerable potential for mutually profitable business. The Chinese market is opening up and Chinese products are increasingly gaining competitiveness in world markets, threatening the incumbent Japanese firms. Japanese and Chinese companies face each other across a changing competitive environment, which is posing new challenges to corporate and business strategies. Within the context of these developments this book looks from different perspectives at how Japanese companies are reacting to the challenges and opportunities offered by China.