Japanese manufacturing investment in the European Community has grown dramatically over the last twenty years. At first, instances of investment were few, concentrated in a small number of industrial sectors. But since the mid-1980's there has been a surge of investment in a much wider range of industries. This volume details the growth of Japanese manufacturing investment in Europe in fourteen industrial sectors. The impact of Japanese competition and direct investment on European industries is considered in the context of the emergence of the three major trading blocs: the United States, Japan and the EC. Roger Strange concludes by making important policy recommendations, and arguing for the need for a new theoretical framework for assessing the political economy of foreign direct investment.

Roger Strange

1 Introduction 2 The Theoretical Framework 3 The Japanese Economy 4 Japan and the European Community 5 Inward Direct Investment in the United Kingdom 6 Industry Case-Studies 7 Company Case-Studies 8 Observations from the Case-Studies 9 Overseas Investment and Structural Adjustment in the Japanese Economy 10 The Effect on the UK Economy of Overseas Investment by Japanese Manufacturing Companies 11 Final Comments