Foreign Investment in Japan Essay Example | Topics and Well Written Essays - 1000 words

Foreign Investment in Japan - Essay Example This dissimilarity in business culture is a vital key to increasing the stakeholders’ worth and for recovery of investments (Finance and Investment).  This dissimilarity in business culture is a vital key to increasing the stakeholders’ worth and for recovery of investments (Finance and Investment).  Cultural Influence One of the most overbearing impressions that Japanese business owners have is that selling out means that they have failed their employees. Their concern for the welfare of their employees after the acquisition has been made is important and they feel that local companies understand this much more than foreigners do. This issue is not limited to foreign buyers; even Japanese equity funds face great difficulties in acquiring Japanese companies. It takes a lot of hard work to convince potential targets to sell because of their concern for their employees. (ACCI Journal).  This is the basic reason for the low numbers of transactions when compared to th e USA and Europe. This raises the question with most foreign investors as to whether Japanese companies are for sale? Japanese companies can be acquired, but this has usually been an uphill task because of cultural barriers. Now the feeling is that Japan needs foreign investment for sustenance (ACCI Journal).