Given the very great distances in geography and social systems as well as in history, between Japan and the industrial nations of the West, it would seem natural that the level of foreign investment in Japan would be rather low. In point of fact, however, substantial foreign investment has a long history in industrial Japan and, with three decades of free access, is at a significant level with revenues of foreign companies in Japan around 15 percent of GDP accounted for by the more than 3000 foreign capital companies in Japan.