Characteristics and performance of Japanese foreign direct investment in latin America

This paper describes the characteristics of Japanese foreign investment in Latin America. In examining FDI patterns, we identify the countries and industries most attractive to Japanese multinational corporations, the preferred modes of entry, and the post-entry performance of these subsidiaries. We find that most Japanese FDI has occurred in Brazil and Mexico, that joint ventures are the most common mode of entry, and that performance varies by country and mode. The observations have implications for three groups of executives: managers of non-Latin American firms, managers of Latin American firms, and public policy makers.