The bulk of Foreign Direct Investment (FDI) "moves" within a triangle: Japan, the European Union, and North America, notably the United States.

While the Japanese are major actors in this FDI triangle, they are also heavy investors in their region: Asia. Australia is one of the favoured destinations in this respect, mainly because of its role as a leading source of minerals and energy.

This enabled the conclusion of long-term contracts between Japan and Australia, securing a reliable market for Australian coal, iron ore and natural gas. Japanese investment in hotel and resort infrastructure made the country an international tourist destination with Japanese nationals accounting for annual receipts of 3 billion Australian dollars.

The automotive industry, information technology and the dairy industry are areas of expanding cooperation and growing investment by Japan.

This paper examines the employment policies, skills and human resources development, and industrial relations practices of Japanese multinationals in Australia between 1990 and 1997.