INTERNATIONAL BUSINESS BEING DONE IN JAPAN

International Business Being Done In Japan

International Business Being Done In Japan

Japan, the world's second largest economy, occupies an important position in virtually every industry and business activity worldwide. Japan comprises four main islands, which are Hokkaido, Honshu, Shikoku, and Kyushu. And nearly 4,000 small islands which all allocated along the northeastern coast of the Asian continent. The country's total land area is approximately 377,819 sq km. Japan had an estimated population of 126.7 million with an annual growth rate of 1.5% in 2000). Over 28 million people were living in Tokyo and Yokohama .

ECONOMIC & SOCIOECONOMIC FORCES

The country that has been chose to be analysed is Japan. There are four environmental dimensions that need to be analysed and be addressed. They are:

Market

        Japanese government encourages foreign investment by having low tariff rate. The economic markets it therefore wide open to any foreign who want to invest in Japan. Japan, which is currently the second largest economy, has a very high technology to support the business. As a fully develop industrial country, the economic market could be describe as mature. Though, currently economic in Japan in not so stable (in terms of currency, interest rate and other economic factor) and blamed to be "incapable of restoring solid growth of the economy" due to political instability and economic crisis which currently happening in Asia (Andrew, C., March 2001).

Fiscal policy

Japan Current fiscal agenda under Mr. Junichiro Koizumi (current Prime Minister) is condemned to lack of detail and ill defined (Anonymous, www.eiu.com, 19 April 2001). Mr. Koizumi has promised to limit Japan Government Bond issuance at 30 trillion Yen, where no details of where and when such cuts have been made. He also promised not to raise tax as parts of his fiscal reforms, presumably with a view of retaining voter support.

Monetary policy

Interest rate for short term interbank rate:

2007         2008         2009

1.4%         1.4%         1.4%

(Source: Anonymous, www.eiu.com, 19 April 2001)

The movement of monetary policy is such a good indication for economic in Japan as it trigger a self sustaining recovery as well as ease deflationary pressure drastically. This however, owing to extreme weakness of demand for funds, could backfire if government fails to take up the challenge, with BOJ continuing, through zero interest rates, will result huge loss in economy.

PHYSICAL FORCES

Life style

Three-fourth of the Japanese people lives in the urban areas. A large share of the urban population is concentrated in the four major metropolitan areas of Tokyo, Yokohama, Osaka and Nagoya. In many ways, Japan's big cities resemble those of Western countries. Tall concrete and steel office buildings crowd commercial districts. Traffic fills wide highways during rush hours. Extensive networks of modern surface and underground trains carry millions of people to and from work. But Japan still has beautiful gardens, parks and shrines which reflect the Japanese love of nature.

Culture and language

        Japan is one of the hardest cultures in Asia for westerners to understand. They are materially more successful than their Asian neighbours and socially more harmonious than modern western societies (Hinkelman, ...