Denis Braga 22581

Phenomenon of Irish republic was named by economists like “Celtic tiger”. Historically Ireland
wasn’t industrial developed country of Western Europe.
The determinants of Ireland’s success in attracting FDI in both manufacturing and services are
well-known and include:
• EU membership and an English-speaking environment (characteristics which the country
shares with the UK of course);
• a low corporation tax rate;
• the skills and experience of the country’s Industrial Development Agency (IDA);
• the quality of the telecommunications infrastructure;
• an educational system that is integrated to a large extent with the country’s FDI-oriented
development strategy (Ireland occupies 4th place after Canada, Australia and India);
• the playing out of agglomeration and demonstration effects;
• country occupies 2nd place after Canada in business environment.

In 90th became one of the most biggest and fashion offshore zone. This is a reason of why
Ireland attracted a big amount of FDI and motive why banks were opened there.

Foreign Direct Investment in Japan

Foreign direct investment in Japan displayed some interesting trends in the recent years. As far
back as 2003 the Japanese government realized the importance of FDI in boosting the growth of
the nation's economy. Studies reflected the superior managerial efficiency and productivity of
foreign business companies operating in Japan. This was considered to be a plus point of
inward FDI into Japan.

Japan witnessed augmented FDI flows since the 1990s. The FDI figures for the time period
1990 to1996 stood at around $1 billion yearly, on an average. This figure climbed to $3 billion
in 1997 and further stood at $12.7 billion for the year 1999.

For the year 2003, the ratio of inward Foreign Direct Investment to outward Foreign Direct
Investment for the Japanese economy bore a value of 0.27. While the comparable ratios in the
same reference period for U.S, France, Britain and Germany ranged from 0.6 to 0.9. The result
implied that in 2003 Japan's inward FDI was way behind its outward FDI. Of the two it is the
inward FDI, which is effective in boosting the growth of the domestic economy.

Such situation formed by influence of many factors. During few after WWII decades formal
restriction imposed on inflow of foreign capital in form of FDI was in forced in Japan, which
display policy of protectionism.
Till 90th most formal restrictions were cancelled but informal barriers still exist. The most
prevailing are:
• cross-shareholding, • closed labor-market.
• existence of closed zaibatsu, • renewable contracts with suppliers

Distrust of Japanese manufacturer to foreign companies and fear of loose control of business
also took place.