Globalization of the economy -1997
Asia moves toward a more open market

Investment in Asia grew significantly in the 1990s reflecting the dramatic economic growth in the region. In 1990, for example, foreign investors accounted for almost half of the investment formation in Thailand and in Malaysia. Foreign investors to the ASEAN countries invested in a wide variety of industries from electronics, transportation machinery, rubber, textiles, sporting goods, toys, and processed food, as well as in service industry such as commerce, hotels and other hospitality fields, contributing greatly to the economic growth of the region.

In 1991, for the first time Hong Kong, Taiwan and China all attended the APEC conference. APEC's 15 member countries and regions, which between them account for 40% of world trade and 50% of the world's GNP, recognized and mutually supported the commitment to greater multilateral corporation in achieving more open trade system in the region.

As foreign investment by non-Asian countries and intra-regional investment by Asian countries increased, new centers of economic growth such as China's coastal region, the South China region, Thailand and its surrounding region and the across-the-strait-economic region in East Asia emerged.

Former Eastern block becoming better integrated in the global economy

In the latter half of the 1980s, new policies were introduced to increase the foreign investment into the region formerly known as socialist economy. Former Soviet Union and other East European nations began easing their regulations on foreign investment in the early 1990s. This included restrictions concerning ownership by foreign investors, tax incentives, procedures for establishing new joint ventures, etc.

Privatization of state-owned companies has been the most important step toward integration of the Eastern block into the global economy. Hungary, Czech, Slovakia and Poland made significant progress in this direction and encouraged Japan and other Asian NIEs countries to invest in the ventures in these countries.

Imports into the Japanese market increasing significantly

Foreign direct investment and the transfer of manufacturing facilities overseas coupled with the globalization of corporate activities have been reshaping global trading by creating new directions and patterns in international trade. For Japan, one of the developments has been a steady increase in the importation of finished products into the Japanese market.

[In Perspective] [Contents: Globalization of the economy]