COLORODA'S FDI IN AUSTRALIA

Coloroda's FDI in Australia

Abstract

This paper examines MNCs' foreign direct investment (FDI) in Australia in its historical continuity and change and postulates on the underlying factors. The MNCs' name is Coloroda and it is a Japanese based company which specializes in the production of hand-made carpets. For research methods, it resorts to archival causes and qualitative induction and deduction logic. Australia, on the other hand, embraced Japanese FDI and Coloroda since these were stable in nature and promising for a continued business and economic engagement. Australia furthermore finds Japan as a colleague for encouraging and harvesting added advantages from enterprise and economic globalization in the Asia-Pacific district, where Japan performances a important role. Nations' strengths, flaws, and national interest work centripetally and centrifugally to advantage from their mutual commitment and advantage.

Coloroda's FDI in Australia

INTRODUCTION

Japan's aggregate annual outward FDI flow to Australia has increased from scarcely US$1 million in 1965 to US$468 million in 1985, to US$1.854 billion in 2004. Its FDI supply in Australia has furthermore expanded certainly from US$6.881 billion in 2001 to US$19.107 billion in 2008. As a prelude to enquire diverse components that induce FDI, it examines diverse FDI ideas, and develops a logical basis of investigation and explanation. The paper advances as follows: First, it makes an investigation into the flow of FDI from Japan to Australia from bilateral as well as international perspectives. Then, with a brief overview of the major theoretical arguments of FDI by Coloroda and nations, it examines the competitive advantages available in these two countries that initiated, proliferated, and sustained their FDI businesses. Finally, summarizing the study findings, it concludes that Japanese FDI to Australia will further flourish due to both countries' historical reliance on mutual advantages and/or endowments. (Yoshihara 2001)

WORLD'S OUTWARD FOREIGN DIRECT buying into AND JAPAN

World buying into Report displays that world's aggregate outward FDI has increased and come to a record high grade of US$1.997 trillion (at present charges and present exchange rates) in 2007. It was in the variety of US$632-US$735 billion throughout the first four years of the present millennium, but rebounded and amounted to US$881 billion in 2005 and US$ 1.323 trillion in 2006. (Krugman 2003) Major suppliers of FDI included the USA, UK, Canada, Austria, Belgium and Luxembourg, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, Japan, Singapore, South Korea, Taiwan (Chinese), Hong Kong SAR, ceramic, Brazil, and Australia. The minute territory ...