This book introduces an interdisciplinary approach to the study of Japanese foreign direct
investment determinants the close relations between foreign investment and trade flows in the
host country and the effects and responses by the local economy. It provides an accessible and
comprehensive view of the overall macro impacts and local effects associated with the
increasing flow of Japanese firms to Mexicös automotive industry. The research and its outcomes
presented here follow extensive fieldwork and use unique statistical datasets to integrate
qualitative and quantitative approaches to the analysis. Carefully chosen case studies produce
an integrated approach to the subject. As a result the book fills a vacuum on this topic and
provides readers with a clear understanding of the complex interactions among participating
actors: Japanese multinationals and Japanese parts-and-components suppliers Mexican local
suppliers government at the national and local levels and cooperating Japanese agencies. By
critically assessing current theories and empirical methodologies the monograph covers aspects
related to the creation of regional production networks and their impact on trade patterns of
the recipient country location determinants of Japanese foreign investment and spillover
externalities in host entities. It presents the reader with a comprehensive view of the
different levels of interaction between multinational firms local recipient economies and
local suppliers and the challenges they face to engage in global chains of production. The book
is highly recommended to academics and their students who seek to understand the complex
international economic relations in the global economy. This compilation also serves as a
valuable guide to policy makers both at national and local levels as it provides an informed
analysis of how to engage local suppliers in regional and global production chains.
