We researched seven Japanese firms (six manufacturing firms and one
non-manufacturing firm) and their six subsidiaries (three manufacturing
subsidiaries, two non-manufacturing subsidiaries, and one regional headquarter) in
Asia, five American firms (two manufacturing firms, two non-manufacturing firms,
and one conglomerate firm) and their five subsidiaries (two manufacturing
subsidiaries, two non-manufacturing subsidiaries, and one regional headquarter) in
Japan, and two European manufacturing firms and their two non-manufacturing
subsidiaries in Japan.1 All of the firms we researched are large and leading firms
of their particular industry. The Japanese subsidiaries that were researched are
located in the Philippines, Thailand, Taiwan, and Hong Kong. Capital ownership
by the headquarters company varied from forty-nine percent to one hundred
percent for the Japanese subsidiaries. The headquarters of the American and
European firms typically owned nearly one hundred percent of the capital of their
subsidiaries in Japan (Table 1).