Running head: JAPAN COUNTRY ANALYSIS 1
JAPAN COUNTRY ANALYSIS 6
Japan Country Analysis
Hieu Le
Columbia Southern University
Japan Country Analysis
According to Moffett, Stonehill & Eiteman (2015), there are three risk elements that organizations have to allocate in their business which are transaction exposure, translation exposure, and operating exposure. Smart corporations are able to manage the risks by utilizing their knowledge and other business strategies in order to manage the risks, maintain and grow their firm substantially in the long term. The transaction exposure
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Thus, with operating exposure, the whole economy is unprotected to the foreign exchange imperil. Nevertheless, Coca-Cola impacts sizable level in their operating activity in Japan. The Japanese government is one of the most strictly countries in the world that regulate and manage tough rules to MNE, which operate their business activity in Japan. (Yarahmadi & Higgins, 2012) advise that the key to maintain, success, and grow business in the region is environmental …show more content…
Japan. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html.
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(5th ed.). Hoboken, NJ: Pearson Education. Sherman, M. B., Weston, H. A., Willey, S. L., & Mansfield, N. R. (2014). Risky business: Managing risk in a complex and connected world. Revue Management & Avenir, (74), 159-173. Retrieved from Business Source Complete Database.
Stanek, M. B. (2002). A review of exchange rate policies and their effect upon nations and firms. Management Research News, 25(4), 19-34. Retrieved from Business Source Complete Database.
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The basic message of source one is that all persons must follow the given laws or face the full burden of the consequences. Source two’s message establishes the expectations for a wide variety of life - including morality, relationships, building, uprisings, mandatory visits to Edo, clothing, finances, and transportation. The overall message is to establish a firm society while removing the risks of rebellion or chaos.
Exchange rates play a pivotal role in the relationships between individual economies and the global economy. Almost all financial flows are processed through the exchange rate, as a result the movements and fluctuations of the exchange have a significant impact on international competitiveness, trade flows, investment decisions and many other factors within the economy. Due to the increasing globalisation of the world economy, trade and financial flows are becoming more accessible
Nearly seventy years ago an unstable alliance between two frustrated countries was born. The U.S. Japan Alliance was formed after a vicious World War between the two countries and the bond was forced upon both nations under the impression that the U.S. and Japan would mutually benefit. During the Cold War both countries were walking on eggshells and felt that they would benefit significantly from this bilateral agreement. Times have changed since the last revision, and it’s time for the U.S. - Japan Alliance to be reviewed and renegotiated to ensure a fair relationship between the two countries.
Japan is a small island nation that is divided into 4 main islands and many more smaller islands. In geographical terms, it is a chain of island also known as an archipelago. The four larger islands are, Honshu, Shikoku, Kyushu, and Hokkaido. The total area of Japan is 142,000 square miles, which makes it smaller than the state of California. Most of the islands are mountainous, the remnants of dormant volcanos and glacial retreat, that are in turn, covered by vast forests with swift flowing rivers that eventually lead into the Pacific Ocean. Because of key terrain features, only 15 percent of the island can be used for the cultivation of crops. In Japan, there are only a handful of navigable rivers because of the steep and rugged terrain that
Hence, Sheffi concludes that Wal-Mart supply chain risk management could be seen as one of the best among the retail (Sheffi, 2015). Wal-Mart understood that, fundamental of resilience is its ability to take control of disruption and recovery from it. In order for this to happen, the company’s disaster recovery plan includes Emergency Operations Centre (EOC) that has four activation levels. What made Wal-Mart so resilient is the company’s supply chain resilience which is the operational ability that enables a disrupted supply chain to reconstruct itself and bounce back into operation even stronger than before (Brusset, X & C. Teller,
Such a process can be very time consuming and imprecise, without, of course, having a market currency price to begin with. The exchange-rate system is an important topic in international economic policy. Policymakers and journalists often seem to treat the choice of exchange-rate system as one of the most important economic policy choices that a national government makes, on a par with free international trade. Under most circumstances and for most countries, a system of freely floating exchange rates is likely to be a better choice than attempting to peg the exchange rate.
According to Moffett et. al, (2015), Japan is one of the countries in the world that have the highest corporation?s tax rate of 40% (Moffett, et. al, 2015). This high tax rate is the most unfavorable element for MNEs that conduct their business in Japan, particular Coca-Cola. High tax rate is not only impact significantly to
“Measure. In the second stage, armed with a very specific set of political risk scenarios, risk managers assess and quantify the potential impact of each scenario on the business. Discounted cash flow (DCF) analysis can be used, for example, to estimate the financial impact of specific events as an input to help organizations understand their tolerance levels. Other tools, such as an organizational network analysis, can help determine the estimated operational impact of specific risks. Here, risk managers create a model of the company as a network of various inter-dependent business units; for example, a consumer goods company might have manufacturing, packaging and distribution across countries. One of the most important aspects of measurement is the translation of projected events into readily identifiable and comprehensible metrics, such as dollar figures, an impact index, or an ability-to-influence index. Using these metrics, risk managers can assess whether the risk level surpasses the organization’s risk appetite or tolerance.” (Culp, Steve)
Japan unlike many other countries has thrived on globalization. Japanese companies have investments all over the world, Japan exports modern technology such as new and innovative vehicles, and Japan’s people tourist in many iconic places outside of their country. But at the same time, globalization is hurting Japan. Globalization in Japan has led the country into issues with pollution. An overflow of waste incineration sites and construction, and also the butchery of Whales. These matters have steered Japan into harming its environment. Japan owns 70% of the world’s waste incinerators which come with the main benefit of being able to burn garbage instead of having it piled up in dumps. With this intention, it poses threats to anybody nearby the facilities because they’re so many. Additionally, Japan has only given the public very vague or unsatisfactory reasons for their slaughter of Whales such as using very broad terms like science and ineffectual arguments like tradition. This killing is putting the Whales’ species in very dire danger. Not to mention that the vast amount of construction taking place in Japan in years could lead the way to deforestation if it hasn’t already. At the same time, Japan has its reasons for using so many waste incinerators, massacring Whales, and to assemble buildings over and over so much. Waste incinerators provide hot water, electricity, and material for construction. As stated already, the Japanese government claims they’re whaling for
Japan is in a mission to search for energy after the devastated earthquake and tsunami in 2011. People are afraid of nuclear power, yet there is no way to stop the production of nuclear power completely. Japan is heavily depending on nuclear because it is cheaper than buying resources from the Middle East. In the long run, this will impact Japan's economic and climate change. There is no right or wrong to this decision, but one thing for sure, Japan needs a new form of energy.
Our company is now in their fifth year of business, and we want to market our product which happens to be the Naim Mu-so QB, which is a music player. The country I and my company choose to sell our product to the country Japan. We base our choice for the pure reason that Japan is a great country to export to and receive good profit in return. Japan as a whole is a very technological country so it won’t be added to them have something of great value. The music in Japan is very electric and diverse. People there are also very into music, they even have a global activity originated in Japan, which is called Karaoke. This activity is played everywhere. Of course, if we want to export to Japan, looking at the Gross Domestic Product is one of the key features in any profit making decision. According to Japan Demographics the GDP in Japan is taped at 4.92 trillion dollars, which is by the way third largest in the world. Since, their GDP is at that amount their GDP per capita is at 33,633.71 per person. These facts show there’s a great possibility the people living in Japan will most likely be able to buy our music player. The population in any country does play a role in whether it’s a good place to sell to because, of that country needs great amount of people willing to buy the seller 's product. According to the Japan Demographics, Japan’s population stands at 127 million people so they have a lot of people to sell to. According Japan’s Unemployment Rate, the unemployment rate
From 2006 to 2007, Japan’s inflation rate took a rapid increase from negative inflation in 2006 to positive inflation rate in 2007. This sharp increase in inflation rate was likely to be due to the world’s shortage of rice crisis. As rice is Japan’s main source of stable food, the rice crisis push up rice prices globally, causing the inflation rate in Japan to rise sharply. Currently, there are speculation that Japan’s inflation rate may rose at the fastest pace in the decade as companies facing the global economic crisis may pass higher costs to consumers.
An exchange rate tells you how much of one currency you can exchange for another. Generally, there are two types of exchange rate which is widely used by many countries: fixed and floating exchange rate. Nowadays, it is necessary to know what are their advantages as domestic currencies are essential to the method that economies run. But they are both not perfect. In 1973, with the collapse of the Bretton Woods system, countries that used fixed exchange rate were seriously affected and floating exchange rate rose afterward. However, there still had some debates on both fixed-rate and floating exchange rate. Especially after the Asian financial crisis in 1997, the debates became more intense. A fixed exchange rate once again favored by some countries. As we can see from the history, they have benefits and drawbacks. Each of them has their own characteristics. It is not possible to determine which exchange rate is better because the choice of the appropriate one may vary from different countries. In other words, the exchange rate regime changes along with the development of the international economic environment. That is why there are some different exchange rate regimes which lies between them in reality. Developing countries that have unstable economies and politics mostly use the fixed exchange rate to guarantee their residents a normal standard of living. On the other hand, developed countries such as the U.S, Great Britain are using floating exchange because
By definition, an Exchange rate is “The price of a nation’s currency in terms of another currency” (1). It is one of the most important measurements for determining a country’s economic strength, and it impacts people’s daily life too. As a foreign student studying in America, we have to pay very close attention to the exchange rate, and this promoted our interests in why exchange rate is floating all the time. In general, exchange rate can be affected by many factors include inflation rates, interest rates, or government policies. But in this paper, we’re focusing on the relationship between exchange rate and political decisions.
Japan has a population of 126,702,133, with a growth rate of -0.19%. Religious practices are as follows: Shintoism 79.2%, Buddhism 66.8%, Christianity 1.5%, other 7.1% (many people practice both Shintoism and Buddhism). The climate varies from tropical in south to cool temperate in north. The terrain is mostly rugged and mountainous. There are many dormant and some active volcanoes and about 1,500 seismic occurrences (mostly tremors but occasional severe earthquakes) every year, in addition to tsunamis and typhoons.