2003 Fiscal Year Final Research Report Summary
A STUDY IN THE NETWORKING OF JAPANESE FIRMS OPERATING GLOCAL BUSINESSES IN NAFTA
| Project/Area Number |
14530068
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済政策(含経済事情)
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| Research Institution | TOHOKU GAKUIN UNIVERSITY |
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Principal Investigator |
KOSHIBA Tesshu TOHOKU GAKUIN UNIVERSITY, ECONOMICS, PROFESSOR, 経済学部, 教授 (20048812)
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| Project Period (FY) |
2002 – 2003
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| Keywords | Glocalization / Networking of business / Intra-firm trade / NAFTA / Japanese automakers / Business localization index / FDI / Subsidiaries & affiliated firms |
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| Research Abstract |
Concluding remarks drawn in this report are as follows:
(1) Trades of goods and services among the members of North American Free Trade Agreement (NAFTA), according to trade data during 1984 through 2002, grew much faster than those between the members and Japan.
(2) Foreign direct investments during 1980 through 2002 developed much faster between Japan and the NAFTA members than those among the members. This means that Japanese firms decided to get, in the form of FDI, into the integrated territory to run businesses in larger market, and to overcome trade fictions and barriers between their home country and the U.S. in particular.
(3) Japanese automakers have established their subsidiaries in the integration. The subsidiaries have also built their subsidiaries while having expanded their business transactions with indigenous automotive suppliers in the NAFTA. Business networking of Japanese automakers has expanded and deepened in the member countries by agglomerating their affiliated firms, business-linked local suppliers, and their parent companies in their home country. Empirical studies in the business transactions of Japanese automakers with their business partners prove the prediction described above by figuring out business localization indices (BLL) during 1988 though 2000.
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