Ministry of Economy, Trade and Industry
Font Size Change

Quarterly Survey of Overseas Subsidiaries

Outline of Survey and Guidelines for Utilizing the Survey Findings

1. Outline of Survey

(1) Objectives
The objectives of the current survey were to dynamically grasp the business performances of Japanese incorporated enterprises engaged extensively in the business operations domestically and overseas, and to obtain the materials and data useful for the government to formulate its industrial policies and trade policies.
(2) Legal foundations for the survey
This survey was legally endorsed and authenticated by the Article 4 of the Statistical Report Adjustment Law. Prior to the commencement of this survey, a pilot or test survey was consecutively conducted in the October-December quarter of 1996 and in the January-March quarter of 1997. The findings obtained from those pilot surveys will also be published together with this survey findings after approval from the General Affairs Administration Agency.
(3) Coverage of survey
(a) Parent companies
As of the end of March of 1997, the respondent companies were chosen as the Parent companies from among the Japanese manufacturing enterprises incorporated under the Japanese laws on condition:
  1. Have more than 50 employees
  2. Are capitalized at more than 30,000,000 yen
  3. Own overseas incorporated enterprises as subsidiaries
  4. Have formerly been authorized to acquire bonds and securities in foreign currencies under the Foreign Exchange and Trade Control Act.
(b) overseas subsidiaries
The qualifications and conditions for Overseas subsidiaries to be chosen as respondent companies were defined as follows:
  1. A locally-based Overseas subsidiaries is under the ownership of a domestically-based Parent company that satisfies the above-mentioned conditions.
  2. A Parent company holds a more than 50% of ownership of an subsidiary in terms of capital-investment ratio on a combined basis of direct investment and indirect investment by a Parent company.
  3. An subsidiary employs more than 50 employees as a manufacturer.
  4. An subsidiary if it is established during the survey period may be included.
(4) Survey method
A survey by mail was employed as the survey method . based on a self-administered questionnaire filled out by a Parent company chosen as the respondent.
(5) Data tabulation method
The data obtained were tabulated into those output by Parent companies and those output by subsidiaries separately. What were not provided at the time of tabulation were estimated by the following formula:
Current estimated data for the company that failed to provide the relevant data = The previously provided data of the said company * The currently provided data consolidated with the data from the companies that provided data both in the current survey and in the previous survey
The previously provided data consolidated with the data from the companies that provided data both in the current survey and in the previous survey
What were included into data estimation were as follows:
Parent companies
Sales, exports, exports to overseas subsidiaries, Purchases, imports, imports from overseas subsidiaries, number of employees
overseas subsidiaries
Sales, sales to Japan, local sales, number of employees
(6) Classification of business category
In principle, according to the Japan Standard Industrial Classification, the category of business that has the largest share of the sales was recognized as the major business of each Parent company as well as each subsidiary.

Top of Page

2. Guidelines for Utilizing the Survey Findings

(1) Fixation of samples within the fiscal year
Based on the survey results as of the year end, the companies targeted for this survey were fixed as a total sample during the following year. As for Overseas subsidiaries, the newly-established companies as well as retreated companies during the current survey period were also included into the data tabulation in each quarter.
(2) Currency conversion
Local currencies if used for entry of figures into the columns for amounts in the questionnaire were converted into Japanese currency at the mid-term mean exchange rate in the survey period published by IMF. The average exchange rate for the quarter in question was 125.24 yen to the US dollar, or 7.31 yen less than in the previous quarter (117.93 yen).
(3) Exports and imports
The amounts of exports and imports that completed the customs clearance under the company's own name were identified as the authentic exports and imports to be explored.
(4) Acquisition of tangible fixed assets
The acquisition-completed or acquired tangible fixed assets during the current survey period were identified as the facility investment qualified for exploration.
(5) Direct overseas investment
The direct overseas investment portfolio reported to the Bank of Japan during the current survey period were identified and targeted for exploration.
(6) Number of employees
Paid officials, executives and directors were included into the number of employees.
(7) Territories
The details of the territories encompassed by the current survey were as follows:
North America:
America, Canada
Indonesia, Thailand, Philippines, Malaysia
Singapore, Taiwan, Republic of Korea
China and other Asian countries
India, Viet Num, Cambodia, Sri Lanka, Nnepal, Pakistan, Bangladesh, Brunei, Myanmar, Laos, People's Republic of China (including Hong Kong)
Iceland, Ireland, Azerbaijan, Armenia, United Kingdom, Italy, Ukraine, Uzbekistan, Estonia, Austria, Netherlands, Kazakhstan, Greece, Kyrgyzstan, Georgia (Gruziya), Cyprus, Switzerland, Spain, Tadzyhikstan, Denmark, Germany, Turkmenistan, Turkey, Norway, Hungary, Finland, France, Belarus, Belgium, Poland, Portugal, Malta, Mordavia, Latvia, Lithuania, Rumania, Luxembourg, Russia
Other than North America, Asia and Europe

Top of Page

3. Symbols in the Statistical Tables

[ X ] shows that the figures are hidden for protecting the confidentiality of the individual reporters because the number of a Parent company that owns the Overseas subsidiary in question related to the hidden figures was either 1 or 2.
[ p ] indicates a provisional figure that may change in the following quarter.
[ - ] denotes the areas not applied nor explored.
[ r ] denotes what were changed from the previously published data.

Top of Page

4. Method of determining figures

(1) Determination of quarterly figures
The figures for a given quarter are determined in the following quarter.
(2) Determination of annual figures
Figures are determined as described in (1), in the quarter (April-June) following the last quarter of the fiscal year (Jan-March). Figures published in the Jan-March quarter are accompanied by "p".

Top of Page

5. Response

The response for the collection of questionnaires were as follows:

Classification Number of respondents Response rate
Parent company 1151 64.5%
Overseas Subsidiary 2403 63.5%

Top of Page

Last Update: January 31, 2008
Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.