Another possible way that Germany has adjusted its trade policy in the light of harsh economic times might be by omitting certain items for economic talks, namely the issue that the Chinese may be...

Germany and Japan Comment classmate 1:Another possible way that Germany has adjusted its trade policy in the light of harsh economic times might be by omitting certain items for economic talks, namely the issue that the Chinese may be making solar power products and selling them below cost to drive out the competition, and with the upcoming Sino-European economic summit talks approaching, Germany can’t afford to alienate a trading partner. Comment classmate 2: FDI is considered by countries that are interested in: ??Satisfying local demand or to export to new markets ??Access to raw materials ??Taking advantage of factors of production that are undervalued by the home country ??Operating in a country to take advantage of technology or managerial expertise ??Political safety From a strategic perspective these are a good place to start in most cases to evaluate if one should invest outside of the home country. Comment prof: Yes, these are good general rules; but can you apply them specifically to German and Japanese firms (or even to US firms if you prefer)? Comment classmate 2: The ability of foreign firms to purchase land in the US creates greater stabilization in the world economies. When foreign firms like Japan or Germany purchase land and develop factories in the U.S. it is better for all parties. It increases demand of skilled labor jobs in the U.S., increase land values and will improve exports in the U.S. simultaneously it will give foreign firms access to new markets, raw material, and political safety. Firms will not engage in these activities unless they believe they will receive a positive contribution for their actions. Comment prof : Thanks for being specific! Comment classmate 3: I understand the greater stability as it pertains to the purchase of land and creating more skilled labor US jobs. I believe the focus should be more on the country's ability to restructure their economy under natural disaster situations as the one stated in the...