FDI by Japanese auto companies in the United States has resulted in U.S.-owned auto companies losing market share to their Japanese competitors.This forms the basis for critics of employment benefits of FDI to argue that:

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Cynics argue that not all the "new jobs" created by FDI represent net additions in employment.The jobs created by the Japanese auto FDI in the U.S.have been more than offset by the jobs lost in U.S.- owned auto companies,which have lost market share to their Japanese competitors.As a consequence of such substitution effects,the net number of new jobs created by FDI may not be as great as initially claimed by an MNE.

FDI by Japanese Auto Companies in the United States Has