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By Sueo Sekiguchi (auth.)

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The language barrier might be one important factor in this situation, the japanese lack of a colonial his tory another. Perhaps the weakness in cultural 36 Japanese Direct Foreign Investment ties, which is partly a result of the policies of the ]apanese government, is the most important. While not limited to investment in resources, the ]apanese tax system enables tax credits in the host countries to opera te where tax treaties have been concluded. A tax exemption facility has been built into the japanese corpora te income tax system to put into effect the same tax credits as in the host countries, and, of course, to avoid double taxation in both direct and indirect taxes.

For individual commodities, price developments vary. For example, the price of copper ore increased sharply in the lauer half of the 1960s. 5. US Department of Commerce, Survey of Current Business, March, 1976. 6. UN, Department of Economic and Social Affairs, The Impact of Multinational Corporations on Development and on International Relations, New York, 1974. 7. See Lawrence B. ), Asia's New Giant, the Brookings Institution, Washington, 1976. 8. Agency for Resources and Energy, Annual Report on Resources and Energy, Tokyo, February, 1976.

Investment in the wood proeessing and metal manufaeturing seetors, for example, is firmly based in the resouree-owning countries. This is especially the ease in North Ameriea, where direet investment in lumber and pulp manufaeturing is very large eompared with that in agrieulture and forestry. A similar relationship exists for metal manufaeturing and mining, though investment in mining stands at about twiee that in related manufacturing. Investment in Latin America and Asia is similar to that in North Ameriea in this respeet.

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