Japan and the New World Order: Global Investments, Trade and Finance

299 Pages·1996·27.667 MB·English

by  Rob Steven (auth.)

JAPAN AND THE NEW WORLD ORDER
Also by Rob Steven
AN INTERNATIONAL DEBATE: Is Japanese Capitalism Post
Fordism? (edited with Tetsuro Karo)
CLASSES IN CONTEMPORARY JAPAN
JAPAN'S NEW IMPERIALISM
Japan and
the New World Order
Global Investments, Trade and Finance
Rob Steven
Senior Lecturer in Political Science
University ofN ew South Wales
Sydney, Australia
First published in Great Britain 1996 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
A catalogue record for this book is available
from the British Library.
ISBN 978-0-333-61006-0 ISBN 978-1-349-24317-4 (eBook)
DOI 10.1007/978-1-349-24317-4
First published in the United States of America 1996 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue,
New York, N.Y. 10010
ISBN 978-0-312-12966-8
Library of Congress Cataloging-in-Publication Data
Steven, Rob.
Japan and the new world order : global investments, trade and
finance I Rob Steven.
p. em.
Includes bibliographical references and index.
ISBN 978-0-312-12966-8 (cloth)
I. Japan-Foreign economic relations. 2. Investments, Japanese.
I. Title.
HF1601.S74 1996
337 .52----<lc20 95-33034
CIP
©Rob Steven 19%
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London WI P 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
10 9 8 7 6 5 4 3 2 I
OS 04 03 02 01 00 99 98 97 96
Contents
List of Figures and Tables vi
Preface X
Acknowledgements xu
List of Abbreviations Xlll
The Emerging New World Order
2 Domestic Crisis: Motor of Internationalisation 41
3 Foreign Investment Zone Strategies 70
4 Foreign Investment Industrial Strategies 109
5 Trade: From Patriotic Duty to Corporate Strategy 155
6 Finance for the Rich, 'Aid' for the Poor 201
7 Conclusion: Patterned Underdevelopment in the
New World Order 246
References 271
Index 279
v
List of Figures and Tables
FIGURES
1.1 The circuit of capital 2
1.2 'Moments' of possible breakdown and types of capitalist crisis 6
1.3 Triadic relationships constituting 'international capital' 10
1.4 Comparative advantage and the gains from trade 17
2.1 Core (29 member 'Fuyokai') of Fuyo keiretsu: Centred
on Fuji Bank and prewar zaibatsu 44
2.2 Core (44 member 'Sansuikai') of Sanwa keiretsu: Centred
on finance from Sanwa Bank 45
2.3 Core (47 member 'Sankinkai') ofDai-Ichi Kangyo keiretsu:
Japan's newest and largest 47
2.4 Core (20 member 'Hakusuikai') and quasi-members of
'United Sumitomo' keiretsu 48
2.5 Core (26 member 'Nimokkai') and quasi-members of
Mitsui keiretsu 49
2.6 Core (29 member 'Kinyokai') and related companies in
Mitsubishi keiretsu 51
3.1 Japanese capital's emerging zone strategies 82
4.1 Strategic alliances in multi-media surrounding General Magic 124
4.2 A bird' s eye view of MNC alliances in multi-media 127
6.1 Securities investments and financial flows among advanced
powers, 1987-93 204
7.1 Re-routeing Japan's surplus to the US via East Asia, 1991 259
TABLES
2.1 Changes (%) in advanced countries' price competitiveness,
1980-91 62
2.2 Some large-scale layoffs & employment adjustments
reported in 1993-94 64
2.3 Dependence on domestic & foreign demand of Japan's
GNP growth 68
3.1 Japan's total accumulated FDI, fiscal years 1951-93 73
3.2 Main recipients of Japan's total FDI as of March 1993 74
3.3 Operating profit rates as a% of turnover, by region and
industry 77
VI
List of Figures and Tables vii
3.4 Japan's FDI by industry and region, fiscal years 1981-93 78
3.5 Main sources of recent world FDI flows (international
payments) 85
3.6 Recipients of recent net flows of worldwide FDI 87
3.7 Intra-regional FDI, 1980-91 88
3.8 Technology tie-ups in July 1991-June 1992 90
3.9 Asian recipients of world FDI in 1986-92 93
3.10 Annual manufacturing wages, by country, 1988-9112 94
3.11 Workers in Japan's overseas subsidiaries, by industry
and region 95
3.12 Japan's FDI in Asian NICs, fiscal years, 1988-93 96
3.13 FDI in main ASEAN countries, 1989-92 97
3.14 FDI in China, by country of origin and year 99
3.15 FDI (reported) in Japan, by origin of foreign company,
fiscal years 104
3.16 FDI (reported) in Japan, by industry and year, 1989-93 105
4.1 Shares of overseas production of parent firms 111
4.2 Japan's FDI in electrical machinery, by region and fiscal
years 113
4.3 Japan's technology trade by industry and region in 1991 115
4.4 Examples of original equipment manufacturing agreements
in microchips 118
4.5 Technical cooperation in microchips 119
4.6 Joint development in microchips 120
4.7 IBM's main cooperative linkages 121
4.8 Major moves to produce in Asia by Japanese companies in
1991-92 129
4.9 Japan's FDI in transport machinery, by region,
1981-93 134
4.10 Japan's three-zone strategy in automobile production,
1993-97 135
4.11 Japan's FDI in general machinery, metals & chemicals, by
region, 1981-93 146
4.12 Japan's FDI in unproductive industries, by region, 1981-93 150
4.13 Japan's overseas mergers and takeovers, 1989-92 151
5.1 Export dependence of some of Japan's key industries 156
5.2 Japan's machinery exports, by region and industry,
1991-93 159
5.3 Volume and price indices of Japan's trade, 1985-93 163
5.4 Currency of Japan's exports in 1991 165
5.5 Economic growth and increases in volume of world trade 166
Vlll List of Figures and Tables
5.6 Regional shares of world trade, 1982-92 168
5.7 Intra-regional and inter-regional shares of world trade,
1980-92 168
5.8 Japan's trade balance, by country and year 170
5.9 Trade between Japanese companies and their overseas
subsidiaries, March 1992 173
5.10 Markets of Japanese firms in Asia and of the regions
generally, 1988-89 175
5.11 Market shares of overseas subsidiaries which are within
the same keiretsu, 1986 177
5.12 Japan's exports, by product and destination, 1989-93 180
5.13 Growth rates of markets for electronics goods, by region,
1987-97 182
5.14 Supplies of components and materials for Japan's overseas
manufacturing subsidiaries, by zone and selected
industries, 1991 184
5.15 Supplies of capital goods for Japanese overseas
manufacturing subsidiaries, by zone and industry, 1986 186
5.16 Markets of Japan's overseas manufacturing subsidiaries,
1987-91 188
5.17 Japan's manufactured imports ratios, by country of origin,
1985-93 192
5.18 Asian shares of Japanese imports, by commodity and
country, 1988-92 193
6.1 US overseas securities investments, by region, 1991-1993 208
6.2 Size and yields ofthe world's main share and bond
markets, 1992-93 209
6.3 Japan's balance of payments, 1984-93 211
6.4 Japan's securities investments, by country, 1985-93 213
6.5 Wealth appropriation by the leading advanced countries 217
6.6 Japan's accumulated overseas assets and liabilities,
December 1992 218
6.7 Accumulated overseas loans of Japan's private financial
institutions, 1988-93 223
6.8 Japanese banks' overseas establishments, by country,
June 1993 226
6.9 Net ODA flows ofDAC countries, 1981-92 234
6.10 Japan's 'economic cooperation', 1970-92 235
6.11 Grant aid and grant element of DAC countries' ODA,
1983-91 (%) 236
List of Figures and Tables IX
6.12 Recipients of Japan's bilateral aid, by shares received in
1980-92 240
6.13 Purposes of Japan's bilateral aid, 1988-92 241
6.14 Japan's growing shares of Asian ODA, 1980-1988 242
6.15 Government financial aid, by purpose, 1988-92 243
6.16 Japan's total yen loans as of December 1992, by region and
purpose 244
7.1 R&D content of selected Asian countries' exports,
1975-87 249
7.2 Foreign control of Singapore's manufacturing industry in
1990 (S$ million) 252
7.3 ASEAN and NICs manufactured exports as shares of total
exports, 1965-89 255
7.4 Changing markets of ASEAN manufactured exports,
1970-90 256
7.5 ASEAN and NICs trade balances, by year and region
($ million) 258