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... in Japan mainly results from the extra costs of doing business in Japan. Such extra costs or location disadvantages include very high land and labor costs as well as business practices unique to Japan. In the first three parts, we'll analyze FDI in Japan and Japan FDI in US & EU, trying to find out the reasons for this phenomenon from some theoretical perspectives. Whether a country's market is open or not influences the country's FDI inflow and outflow. Japan's market, as we'll discuss in part four, is open, and to some extent, closed as well. In the last part, we'll give out the future trends of FDI between Japan, US and EU. Analysis of US's and EU's FDI in Japan Current situation of FDI in Japan Figure 1 demonstrates the FDI inward stock in five countries between 1980 and 1999. Obviously, since1980, the total value of FDI in Japan increases dramatically. However, ...