Is investment from foreign companies necessary for the success of Japan’s economy?
Depending on what we are, the answers may well vary, and they all make sense, but in my view, inbound foreign investment has become crucial to Japan’s economy. I hold this view for mainly three reasons.
First, studies have shown that recent foreign capitals generally have a greater economic impact than domestic ones due to their larger scale. Besides, capital tie-ups often involve technological cooperation. For example, Japanese automobile companies have already formed capital tie-ups with one of these countries and have successfully acquired significant research and development funds and technology.
Next, the Japanese economy is expected to decline steadily for years to come due to the decreasing and aging population. To maintain current economic strength and social systems, we need not only domestic human resources but also foreign investments. Many economists across the world suggest the same.
In addition, some might argue that Japan’s economy is still large enough that foreign investment is not necessary. However, refusing foreign investment would mean withdrawing from economic cooperation, which would have a negative impact on free trade and worsen international relations.
In conclusion, I am convinced that inbound foreign investment is necessary to Japan’s economic success today based on the reasons mentioned above. (201 words)