Starbucks in Japan

The main challenge about trade is the long-term condition of Japan. Although Japan performs well now, it is a receding market. There is a significant challenge for Japan in the future. It is facing a dwindling work population, as the average populace gets older. This provides a serious risk as if the workforce reduces in size so does the production. And production is one of the main factors that make Japan wealthy. In addition, even though it is the second largest economy in the world it will face high expenditure. This is a serious issue if not properly taken care of. However, a country with one of the highest GDP’s in the world is unlikely to mistreat

The Zaibatsu, which is a combination of the top grossing companies in Japan and have many connections in the government and court system that give them a substantial amount of power. Lastly, Japan’s resources are very limited because only 12% of its land is fertile, and they must import 80% of its energy to them. Socially, Japan’s ageing population is another reason why the economy has become stagnate. The ageing population will eventually cause labor shortages that Japan cannot replace.

Currency: Japan uses the Yen, as The United States Uses the dollar. Exchange Rate 12/31/04 US=$1 and Yen = 110.5. Gross Domestic Product (GDP, at market exchange rate) $4.8 trillion for Japan and for the United States it is $11.50 trillion for 2004. Inflation Rate (consumer prices) Japan actually as a deflation of -0.4% as the United States as a inflation rate of 1.90%. Current Account Balance (2004F): $174.1 billion for Japan and the United States is 187.9 billion .Major Trading Partners for both countries.: Germany, Asian NIEs, China, OPEC Merchandise Exports (2004F): $522.4 billion for Japan and $630.57 billion for the United States. Merchandise Imports (2004F): $395.9 billion for Japan and 647 billion for United States. Merchandise Trade Surplus (2004F): $126.5 billion for Japan and for the United States it is $167 billion. Major Export Products for Both Countries: Machinery and transport equipment; chemical and other manufactured goods Major Import Products both countries: Chemical and other manufactured goods; machinery and transport equipment; mineral

By contrast, Greece’s public debt is valued at about 130 percent of it's GDP at the beginning of it's present default misfortunes. While Japan may well be able to service this substantial debt without the risk of sovereign default, making the assumption that it's low-interest-rate climate is maintained, it's difficult to see how conditions for fast or even moderate economic growth could be generated with these circumstances

Japan’s unemployment rate of about 4% opposed to the U.S. unemployment rate of close to 10%. Even the financial debt to GDP ration is an advantage, and debt in the private sector has not increased unlike the U.S. and European countries, (Time, 2009). In addition, since Japan is a huge exporter and with the U.S. demand going downward, the international balances and growth declined especially as the dollar value dropped and the yen surged. •

It would, in effect, offset deflation, by constructing an anticipation of escalating prices. Cutting public works could make up the immediate revenue loss, and the upcoming tax escalation would put Japan's finances on a sturdier path. It is neither too late nor too expensive for Japan to revitalize its economy by pursuing proper fiscal expansion, financed by the Bank of Japan buying government bonds.

Today in Japan, a reinvention is necessary. There are many struggles with the young generation, the old generation, and catastrophic events which should be addressed. Specifically, the Japanese economy has been experiencing deflation for the past twenty years. In an article, the results of the deflation were described. The authors said, “Because of fewer available jobs and lower

The graph of economic growth look so nice and strong. People were being very optimistic about the economy, making Japan in the emotion of euphoria, which started a trend of investing.

Japan 's market economy, which is mostly industrial, is the third-largest economy in the world by GDP, which currently sits at 4.92 trillion USD. Japan has one of the world’s largest consumer markets, mostly due to its large population and well-educated work force.

The 1970s brought major changes for Japan's external relations. The decade began with the end of the fixed exchange rate for yen and with a strong rise in the value of yen under a new system of floating rates. Japan also faced higher bills for imports of energy and raw materials. These new exchange rates and the rise in raw material costs meant that the excesses of the decade's beginning were lost, and large trade deficits followed in the wake of the oil price shocks of 1973 and 1979. Expanding the country's exports remained a priority in the face of raw material supply shocks, and during the decade exports continued to expand at a high annual average rate.

The deregulation of financial markets catalysed by Globalisation worldwide has impacted on the amount of trade within the Japanese economy beneficially allowing easier access to foreign currencies, facilitating a higher flow of goods between nation, by relaxing laws that severely prevented foreign buying of currency, and floating the yen. These drivers have helped boost Japan's trade and recovery from its recession. Technology has allowed finances to be traded and communication to be near to instantaneous. This has increased dramatically the amount of FDI into Japan largely thanks to the numerous strategies the Japanese government has taken to promote economic growth and hence development. Finance and Foreign Direct Investment (FDI) have increased as a direct result of globalisation doubling from $63 billion in 2001 to $144 billion in

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

The onset of Super Endaka in 1995 summed up to an already existing situation of global recession (1991), with price pressures, posted production and sales declines. Moreover, trade barriers in Europe prevented Japan's firms to expand and compensate for the US losses, where the price effects of yen appreciation were most severe. This time, the challenge posed by the new exchange rate shift was even harder than the first one.

Japan ranks as the third largest economy in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International Monetary Fund (IMF). Japan’s resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan’s asset price and real estate bubbles. As can be seen from the graph below, Japan’s GDP has hovered around the same level through more than 20 years of economic stagnation. The GDP’s slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan’s stagnation has been the BOJ’s fight against deflation.

Japan is the third largest economy by nominal GDP, $4.6 trillion, and fourth largest economy by purchasing power parity. In addition,