JAPANESE FDI In the era of globalization, international trade and international investment are expanding at exponential rates. Almost all developed countries are involved in foreign direct investment processes, both in the form of outward and inward foreign direct investment. Among developed countries there is the case of Japan which is different; The Japanese attitude towards foreign direct investments has always been very cautious. On the one hand, foreign investment and Japanese exports abroad played a vital role in the post-war economic growth period; on the other hand, access to the internal market by foreign investors, the so-called inward FDI, has been very limited. (Paprzycki, Fukao, 2008). Japan is a highly industrialized country, it has a large market, its workforce is highly educated and the political situation is much more stable than almost all other East Asian countries, so why is foreign direct investment rate coming in so small in Japan? (Frank, 1975). As a study by Hara and Razafimahefa (2003) highlights: “in 1999, inward FDI amounted to 0.7% of GDP while the ratio reached 9.3%, 9.5%, 11.7% and 23 .3% for Germany, The United States, France and England respectively”. Although the level of inward FDI is still very low, its level has steadily increased since the second half of 1990; in fact, it went from 3,837 million US$ to 28,276 million US$ in 2000. (Hara, Razafimahefa, 2003). The Japanese government has promoted some policies to help increase inward FDI, such as new legislation that facilitates the acquisition of Japanese companies by foreign companies and the creation of the Japan External Trade Organization (JETRO) (Head , Ries, 2005). Analyzing the attitude of the Japanese government towards incoming foreign direct investment, it is not possible that it was not possible to use shares instead of cash and that it was allowed to use shares instead of cash and the improvement of legal procedures for the creation of foreign direct investments. an M&A activity. (Arikawa, Miyajima, 2007). Despite all these government regulations and laws that help inward FDI; in the early 1990s the inflow of investment did not grow substantially. The greatest growth occurred between 1998 and 1999 and has continued to grow steadily since 2000. However, the flow of inward foreign investment is clearly much lower than the outward flow and, despite steady growth in recent years, the ratio of inward foreign direct investment to GDP remains very low compared to almost all other industrialized countries. The government's action towards promoting foreign investment is still strong, in fact in 2003 the Invest Japan Office was established within JETRO and other measures regarding the elimination of barriers are still in force. (Suginohara)