The Importance of Being Global

Abstract

Abstract In every country where economic reform has succeeded, globalization has been pivotal. It provides fresh ideas and reduces the power of local vested interests. In some areas, like international trade and foreign investment in the stock market, Japan’s globalization has increased remarkably. In all too many areas, it still lags. Out of 196 countries, Japan ranked dead last in the ratio of cumulative inward foreign direct investment to GDP. Relatively few CEOs in leading companies have had overseas managerial experience. Very few Japanese scientists work overseas or cooperate on papers with scientists from other countries. The United States has a national security interest in Japan’s return to economic vibrance, and US civil society can help, more so than Washington. Some will come from companies and financiers in the form of foreign direct investment, and technological linkages among companies, as well as financial investments by venture capital, private equity funds, and stock market investors. Universities can help by cooperating on entrepreneurial programs.