On this point, the share of overseas business fixed investment has been rising further in recent years and Japanese firms have been increasingly expanding their overseas business activities (Charts 5 and 6).
Fundamentally, this reflects firms’ efforts to capture demand in overseas economies with relatively high economic growth; however, it also appears to reflect that the persistent trend of the yen’s appreciation is accelerating such business activities. From an even longer perspective, developments in the yen’s exchange rate have shown large swings.