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Analysis of US's and EU's FDI in Japan Current situation of FDI in Japan Figure 1 demonstrates the FDI inward stock in five countries between 1980 and 1999. Obviously, since1980, the total value of FDI in Japan increases dramatically. However, compared with US and other European countries, the FDI inward stock in Japan still remains at a low level. And, the ratio of FDI/GDP is also low in Japan (see Figure 2). US is the most important investor in Japan (see Figure 3), followed by UK, Germany and France. Many reasons were given out by researchers to explain why the FDI value is relatively small in Japan. Among those, six explanations have become consensus now, 2 of which are relevant to the reduced attraction for foreign firms to invest in Japan, and the rest are about the entry barriers, due to the distinctive way adopted by Japanese firms and industries, they will...

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