While there are effectively no legal barriers, difficulty in carrying out corporate acquisitions poses a major obstacle to boosting foreign investment in Japan, says James Abegglen, a leading expert on Japanese business affairs.
Speaking at the Foreign Correspondents' Club in Tokyo, Abegglen, chairman of Tokyo-based Asia Advisory Service K.K. and author of "Kaisha: The Japanese Corporation," said any difficulties potential foreign investors face -- such as difficulty in setting up distribution systems and recruiting midcareer managers -- can be "solved overnight" by acquisition.
"Acquisition in the West is an opportunity to realize profits from the sales of shares," he said. "But acquisition in Japan is an opportunity to find a rescuer for troubled companies."
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