Japanese Inward Investment in UK Car Manufacturing

The single European market movement since the early 1980s put non-member countries under pressure. Under the name of globalization Japanese companies flooded into the European Union. As contrasted with the strategy in the US, Japanese multinational enterprises moved towards the EU were haromised with political action by the Japanese government. Dumping accusations and voluntary export restraints made the Japanese government urge on her MNEs more positive action towards the EU, a push factor for foreign direct involvement. While the Japanese government pushed her MNEs into the EU, all European industrial problems such as the high rate for unemployment, de-industrailization, and shrinking consumer markets were expected to be solved by the new wave from the East, the pull factor. Within the push factor, the Japanese government, especially MITI, was brought into action again as a business negotiator. Because of the strong incentive from member countries (pull factor), the policy towards inward foreign direct involvement was matched to the Japanese push factor. There was a small pin-hole in fortress Europe, namely Japanization.