Japanese inward investment in UK car manufacturing : a case study in international business : national government relations within the context of the European Union

This title was first published in 2002. This compelling text provides fresh insight into an area that is often touched upon, but rarely examined in any great detail - the relationship between Multinational Enterprises (MNEs) and their host governments. Taking Japanese Foreign Direct Investment (FDI) strategy, arguably the model of FDI, Young-Chan Kim takes a revealing look at why the United Kingdom (UK) has dominated among the EU member states for FDI destination, while ironically losing its nationalized car manufacturers. Scholars of business history, international business and business economics will find this work invaluable. Cover 1 Half Title 2 Dedication 3 Title Page 4 Copyright Page 5 Contents 6 List of Figures 7 List of Tables 8 Preface and Acknowledgements 11 List of Abbreviations 14 1 Introduction 16 Some Leading Theories of Foreign Direct Investment 18 The Kojima-Ozawa Theory 20 Dunning's Eclectic Theory 25 Currency Area Theory 28 Internalisation Theory 30 An Alternative Model of Japanese Foreign Direct Investment in Europe 32 Notes 37 2 Japanese Industrial Policy and Foreign Direct Investment in Europe 40 Japanese FDI and Europe 41 Japanese FDIsince 1980 41 Japanese FDI towards the EU 47 MITI and Business Groups in Japan 52 Elite and Decision-making in Japan 58 Conclusion 62 Notes 64 3 EU-Japanese Economic Relations and Car Manufacturing in Europe 66 EU Trade Policy 66 1 The Budding Stage (1958-68) 67 2 The Enlargement (1969-74) 69 3 The Retardation (1975-84) 70 4 New Europe (since 1985) 71 EU-Japanese Economic Relations 75 The European Car Industry 81 1 The EU Car Industry during the 1970s 84 2 The EU Car Industry during the 1980s 87 3 SEM and EU Car Industry 89 Japanese Car Sales in Europe 97 1 The Japanese Car in the EU since the First Oil Shock 99 2 Japanese Car's New Strategy in the EU 101 Conclusion 103 Notes 105 4 A Comparative Analysis of Industrial Policy and Inward Investment in Four European Countries 107 Industrial Policy and Investment Incentives 108 France 108 Germany 115 Spain 122 Japanese FDI in the UK 128 UK Industrial Policy 128 FDI in the UK since 1979 131 Japanese MNEs in the UK 135 Conclusion 139 Notes 144 5 Car Manufacturing in the UK, 1945–77 146 Government and the Car Industry 146 The Brief Renaissance in 1951 147 Turbulent Times under Conservative Rule, 1951-64 150 Labour Policies and Industrial Decline since 1964 158 Conclusion 163 Industrial Relations 164 Government and Industrial Relations before 1964 165 Government and Industrial Relations after 1964 167 Conclusion 173 Management Strategy 175 Marketing and the Productivity Problem 175 Research and Development 178 Car Exports and Imports 181 Conclusion 185 Conclusion 186 Notes 188 6 Government, Industrial Decline and Japanese Involvement in the UK Domestic Car Industry 190 Nationalisation and the Ryder Plan 191 Michael Edwardes and the Honda-Rover Collaboration Project 196 Denationalisation and the Death Knell of the UK Domestic Car Industry 206 Honda in the UK 211 Honda and Regional Economic Development 218 Conclusion 223 Notes 227 7 Nissan in the UK: A Case Study in the Politics of FDI Decision-making and Regional Economic Development 230 Nissan and the Politics of FDI Decision-making 233 Nissan and Globalisation 235 The Decision to Manufacture in the UK 239 Nissan and Regional Economic Development 249 Nissan and the Economy of Tyne and Wear 250 Regional Economic Development: Nissan and Honda Compared 255 Japanese FDI and the UK Component Industry 257 Components Manufacturing in the UK: Nissan and Honda Compared 259 Conclusion 266 Notes 270 8 What is to be Done? 273 Japanese FDI in Car Manufacturing and the 'Fortress Europe9 Debate 276 Evaluation of EU Policy 277 Evaluation of Japanese FDI in Europe 279 UK Industrial Policy and Japanese FDI in Car Manufacturing 282 Japanese FDI and the Decline of Manufacturing Industry in the UK 287 Notes 297 Epilogue 299 Notes 302 Bibliography 303 Japanese Government Publications 303 UK Government Publications 303 Association and Institution Publications 304 Company Publications 306 Theses or Unpublished Papers 306 Newspapers and Journals 307 Books and Published Articles 314