In this module, we will learn about the options a multinational corporation has to invest directly in the foreign market; the foreign laws that regulate such direct access; and the international rules that provide a degree of investment certainty.
we will also explores the jurisdiction-specific issue of setting up a foreign presence in Japan. In particular, we will look at how Japanese law regulates the incorporation, management and acquisition of companies.
To prepare, please download and complete the assigned reading for this module.
Demonstrate class engagement by submitting evidence of (a) pre-reading and (b) post-class reflection in relation to any five modules of the course.
The class is on 19 January 2025 (intensive class).
FDI
What is foreign direct investment?
How does it compare to the other options for expanding into foreign markets?
What types of FDI are available to your client? What are their advantages?
What risks does the client need to manage and how would you advise your client to hedge against those risks?
How is FDI regulated under (a) international law and (b) Japanese law?
In your view, how would you assess the "ease of doing business" and relative attractiveness of Japan as a place for FDI?
Structuring the Investment
If foreign direct investment connotes a "physical" or "structural" presence with a degree of "control" in a foreign market, this raises the issues of:
what is the dominant structure available under the law -- and why has it become the dominant mode of doing business today globally?
how do you create or obtain such a structure under Japanese law?
who are the stakeholders in a company (that is, how has an interest in how the company is run) - what role do these stakeholders have in running the company and how does Japanese law regulate their rights, duties or powers?
To get started thinking about these issues, consider the following documentary, The Corporation (2002)