Plazza Acord and the “Explosion” of the Japanese FDI

AbstractAs the name already states, the present article proposes to analyze the advancement of Japan's FDI, caused by the yen's strong appreciation (after the Plaza Accord-1985). The increasing of the Japan's currency and the disputes with western states, caused by the trade surplus, made the aggressive export policy harder to accomplish. Therefore, they had to find a new paradigm of growth, which could provide a sustained economic development. They tried to expand the investments abroad, which were considered the adequate solution at that time. The aim of this study is to analyze the evolution of the FDI, its allocation by regions/countries, by sectors (manufacturing, nonmanufacturing ones) and also the consequences on the Japanese economy