Japanese Multinationals in CEE Transitional Economies

The expansion of EU to the east is making positive contributions to the development of the world economy and facilitating the movement of goods, capital and labor. In particular, the capitals from industrialized countries are pouring into Central and Eastern Europe (CEE), an emerging marked. Meanwhile, Japanese direct investment to CEE is also increasing rapidly. This article is to clarify the following questions concerning the trasuplant of Japanese production system (JPS) towards CEE. Is it possible for Japanese multinationals to introduce JPS into transitional economies in CEE? How viable is the JPS being beleaguered by the European multinationals? In what way would the Japanese firms operating in the countries influence the formation of the local systems? The author will make full use of the data collected through a field work in 2003, to verify the above questions