Friction with Foreign Countries over Trade in Multinational Enterprise

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Some kinds of "economic frictions" on the recent stage of capitalist world market that foreign direct investment with production activities has given a qualitative change to foreign trade, were surveyed through the analysis on present situation of Japanese firms in this report.The results of our study will be roughly devided into two contents as follows.A. The analysis on new phase of business behavior in multinationals.We have started to analyse how the management development of Japanese firms has caused trade frictions, by using PLC model. Then, economic frictions were investgated in small business, in automative industry, and with England. Furthermore, our study were focused intra-firm trade that had effect traditional foreign trade transaction, surveying concrete examples for the international division of labor in a firm, transfer pricing and OEM trade.b. The Analysis on the effects of multinational business activities and the management conditions.In order to prove the influence to home economy by economic frictions, it has been tried to explain "hollowization" under the latest situation of U.S. Finally, we have analysed recent legal conditions to promote the localization of overseas production as one of the way to relieve economic frictions.