Eleventh Global Studies Conference

Abstract

Globalization has a direct influence on regional economies. Research shows that in order to secure regions’ sustainable economic development, exchanges with outside the region are important. This paper examines what kind of relationship the Japanese municipal governments wish to build overseas. Based on a survey of the international strategy of 47 Japanese municipalities of the prefectural level, about half of them have established administrative plans to promote economic exchanges related to overseas. The international strategy by Japanese municipalities has increased since 2010. Two perspectives are considered. First, capturing the demand outside the region, including foreign market development of local products and attraction of foreign tourists. Second, increasing the capacity of the region to participate in global production networks by incorporating knowledge from outside and increasing regional diversity and tolerance for regional innovation. Municipalities can build reliability with other areas overseas through intergovernmental relationships. This is achieved through international business meetings, dispatch of economic mission teams, and joint exhibition with companies in trade fairs. Municipalities are seeking to enhance the credibility of local companies and reduce transaction costs related to international business.