i As the dollar has depreciated relative to many foreign currencies recently, foreign acquisitions of U.S. firms and assets have increased.1 In the 1970s and early 1980s, most foreign acquirers were from the UK, Canada, and the Netherlands. By 1987, Japanese individuals and companies owned or controlled more U.S. assets than did any other class of foreign investors.2 This paper addresses several key issues regarding Japanese direct investment in the U.S. The market for cross-