subsidiaries

Mr. Naoyuki Haraoka's picture

ASEAN is No “Plan B” for US-China Trade War Disruption of Japanese MNC GVCs

A quarter of Japanese manufacturing is done overseas with the subsidiaries of Japanese multinational corporations (MNCs) venturing overseas to extend global value chains (GVCs) that begin in Japan. Under the resulting structure, the majority of Japanese manufacturing exports head towards overseas subsidiaries with capital ties to headquarters in Japan.

Mr. Naoyuki Haraoka's picture

The Changed Mission of Japanese Firm Subsidiaries Overseas

“Supply chain” is a term that captures well the essence of the activities of Japanese firms’ subsidiaries abroad. Their overseas plants, particularly in the machinery industry in Asia, are geared towards manufacturing components to take advantage of cheap labor in other Asian countries. Later the components they produce will be assembled in factories in Japan or other sub headquarters in big cities near their components producing factories.