Japanese Corporate Responses to EC Market Unification

I . Introd uction Faced with a dramatically appreciating yen and harsh trade friction since late 1985, Japanese corporations have been actively involved in efforts to fully optimize the potentiaf of their management capabilities and in restructuring their organizations. These efforts have been manifested in three areas : (1) rationalization of the company's main domestic business field-comprising efforts directed toward increased productivity through rationalization and labor-saving, increases in the high added value of existing products, development of new products and cultivation of the domestic market, etc. ; (2) diversification of business, starting new enterprises and cultivation of interbusiness fields, etc. ; and, (3) internationalization-comprising advances into overseas markets, forming of international partnerships and overseas procurement of products and parts, etc. Among these restructuring activities, I would like to focus upon the area of internationalization and its relationship to the theme of this paper.