The Changing Character of Japanese Direct Investment in Canada

Abstract

The report explores Japanese foreign direct investment in Canada, noting that Canada’s commercial relationship with Japan has declined “significantly” in recent years. Describing this as a “worrying situation”, the report highlights the importance of Japan to Canada’s economic health, as it is both a major global source of investment funds as well as a source of cutting-edge technologies, products, processes and practices that are ‘downloaded’ into Canada through these direct investments. The authors suggest that as part of the process of promoting and expanding the economic relationship between Canada and Japan, Canada must become more aware of Japanese firms, investment trends and the underlying reasons why Japanese companies are investing - or not investing - in Canada. To this end, the report examines the direction and purposes of Japanese ventures in Canada over the last several decades.