... (Market seeking) 2. Cost reduction - Access to cheap labour and other factor costs (Efficiency seeking) 3. Attempt to control raw materials (Resource seeking) Since Japan has virtually no raw materials of its own and is generally regarded as a high-cost country, this leaves only one key motive for FDI in Japan which is to achieve market access. In fact, Japan's high costs and limited natural resource endowments are partially important reasons explain Japan's active role in pursuing outward FDI. Being the world's second largest single-country economy, Japan accounts for roughly 13% percent of the world's GDP (1998 figures, quoted in BTI, 2000:7). In theory, the fact that it is a high-income country with a large domestic market should make Japan an attractive location for FDI. However, the Bradford research group (.....) contended that it was not locational factors that disfavour Japan as a target for FDI, it is internationalization factors. (Mirza et ...

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