Japan's Global Companies Thrive but Economy Withers

With few investment opportunities for foreign capital at home, Japanese companies' overseas acquisitions may not soften a domestic slump

An incongruous juxtaposition of events has arisen this week, with Japanese companies going on an international shopping spree on the one hand, and news that Japan has formally entered a recession on the other. Some commentators have assumed that the prowess of Japanese companies in acquiring foreign companies will mitigate the overall downturn at home. However, there is no logical link between the two.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.