Globalisation and Enterprise

Globalisation and Enterprise



Globalisation and Enterprise

Introduction

International business covers commercial activities taking place in more than one country. This concept includes government transactions and private transactions. For example: "Apple is poised to international business: they already have presence in various countries", "The current exchange rate favours international business", "We would like to participate in international business, but our structure does not allow it." There are several laws and regulations that are responsible for establishing the conditions and modalities for international exchange of goods and services (Eduardo, 1999, 89). These rules define how income can be realized from the goods or capital.

As we are going global and entering into international business so we must also take into account cultural and social factors that, although not written, may be as important as the laws at the time of successful operation. In Japan, it is very important to maintain a personal relationship before making a business, which is usually not necessary in the U.S. or Europe. For other more specific factors related to international business success, are competitiveness and efficiency. The purpose of this paper is to compare and contrast Japan and china's market for the expansion of our business.

Political economy

The Japanese and Chinese business systems are very complex, and society oriented. Capitalism and state run economy is still present, up to this day, in the 21st century Japanese and Chinese business and culture.

In late 2010, Japan's economy was $ 5.474 trillion (£ 3,414 trillion), as reported from Tokyo. In the same period, China's economy was closer to $ 5.8 trillion. Japan suffered a decrease in exports and consumer demand, while in China there was a production boom. Japan has played down the significance of changes the fact that it took place as the second largest economy for the first time more than four decades. "Historically, the birth of new economic superpowers has caused greater global instability” China's booming economy was welcome news for Japan, since it is a neighbouring country. China is now the main trading partner of Japan and is increasingly important for companies such as electronics firm Sony and automakers like Honda and Toyota (Berndt, 2006, 14). However, Japan must guard against "because of the economic risks of foreign currency and jumping." The yen rose against other currencies, recently celebrating 15 years of superior level of the currency against the dollar, and the fear is that the profitability of currency could hurt foreign demand for Japanese products.

Economic competition

China, a nation in the years after World War II lived a reality opposed to the Japanese, has begun to experience growth from the 80's and today is the economy growing at faster pace.

The need for raw materials China has worried Japan. Both are the third and second largest oil consumer in the world, so the race now is to ensure the raw material and energy access.

China and Japan have a dispute over the maritime border in the East China Sea, where large reserves of oil and gas, and that was ...