Japan switches from exports to investments for growth

SoftBank has gone abroad for growth (photo: dpa)
SoftBank has gone abroad for growth (photo: dpa)

Japan’s period of high growth driven by exports and domestic demand is over. Companies are reacting to unique economic circumstances by using their cash reserves and cheap bank loans to invest in foreign firms. While the yen is strong and interest rates are low, the buying binge will go on. But Japan’s track record in making overseas acquisitions succeed is mixed.

A SPECTACULAR takeover bid for a leading American company highlights a major trend: Japan’s shift to a growth model driven by foreign investment, rather than exports.


SoftBank Corp, a Japanese internet and telecommunications powerhouse, has offered US$20 billion for a 7...

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