Tuesday, August 16, 2011

Facing harsh economic conditions, Japanese firms eye greater overseas expansion

More than half of 105 leading Japanese companies surveyed are looking to locate more factories and offices overseas to counteract the strong yen, falling share prices and power supply shortages, according to a Kyodo News poll.

The survey found 55 of the 105 said they would consider stepping up overseas expansion when asked what actions they may take to cope with these increasingly harsh economic conditions.

The findings corroborate widespread concern that if these harsh conditions lead Japanese companies to relocate factories and offices to emerging economies and elsewhere abroad, the hollowing-out of Japan's domestic industries will only accelerate. (more)