was concerned primarily with the policy problems of a host country. Canada's relative shares of the world stock.of inward and outward direct investment had narrowed from 18,2 per cent and 3.3 per cent in 1962 to 8.5 per cent and 4.5 per cent in 1987, moving the region towards a position of greater balance between inward and outward direct investment. QI 13. Japan is the major developed country that is now most dramatically out of balance in terms of a home/host country relationship. But Japan's role is still relatively new. The first major outflow of foreign direct investment from Japan began in the early 1970s and grew rapidly over the 1980s. Now Japan is also beginning to face greater inward direct investment. Policy .pressures forced a lowering of barriers early in the 1980s, and transnational corporations from Europe and the United States are responding by seeking to establish a market position within the growing Japanese economy. 11 I •• • E/C.10/1990/5 English Page 8 14. These developments suggest a balancing trend among developed countries where cross-investments may create the basis for a more common policy outlook . The United States, especially, now grapples with issues of increased foreign ownership in its economy rather than promoting only home country positions. Meanwhile Japan already faces reciprocity demands, especially in the service sectors, that will limit its investment abroad unless a corresponding foreign investor presence is accepted there.~/ 15. The most persuasive explanation for this expanded cross-investment pattern is the greater parity that now exists between the world's developed regions. Corporations find they must be physically present in all areas in order to compete, particularly to stay abreast or new technological aevelopments and to engage in a broad enough marketing campaign to recover the sp"iraling costs of research and 
**Analysis**
The text discusses the trends and implications of cross-investment patterns among developed countries, highlighting the shifts in inward and outward direct investment in Canada, Japan, and the United States. The text also mentions the impact of technological advancements and market competition on corporate strategies. Based on this analysis, it is likely that the text is related to economic development, international trade, and industry.

**Category**
International trade, Industry