1.
There are many factors that have caused more FDI in Ireland and less FDI in the country of Japan. The first factor is the attractiveness of the market. Ireland has market that is yet to be tapped fully and offers favorable government policies that has encouraged the foreign investors to come and make FDIs in the country. In comparison to this, the market of Japan is saturated and highly competitive that creates smaller opportunities for the foreign players, willing to invest in Japan. Further, the cultural dimensions also play an important role. Japanese culture reflects a higher level of the uncertainty avoidance index in comparison to the Ireland. So, it creates better opportunities in the Ireland. Ireland has also been the part of the European Union that also creates benefits if FDI takes place in the country of Ireland and these benefits are absent when an investment takes place in Japan. Besides, there is a trade surplus for Japan, so it is good to make FDIs in the country where there is already untapped market to get the benefits of close proximity to the target market. These are the reasons that caused the Ireland to have a higher percentage of FDIs in comparison to Japan.
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