HND地理outcome2.docx
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Q1
Inabout750-1000wordsexplaintheinfluencethatallofthefollowingfactorswouldhaveonadomesticfirmexpandingintoamajoroverseasmarketsuchasJapan.
¨Politicalstability
¨Economicsituation
¨Belief/valuesystems
¨Language
Politicalstability
Politicalstabilityisthefirstandforemostfactoraboutexpandingintooverseasmarketwhichofferastableconditionforbusiness.Forexample,ifthereiswarintheplaceofoverseasmarketorsocietyisunrest,thebusinesswillnotoperatenormallybecauselocalcitizendonothaveinterestofmakingeconomicactivities.Conversely,ifitispeacefulandcitizendonotworryaboutthreateningpolicyfromgovernmentthere,thedomesticfirmwantingtoexpandwilloperatesteady.InJapan,inrecentyears,the
relationshipbetweenChinaandJapanisunfriendlyandJapanesegovernmenttookatoughstanceagainstChina,whichisnotagoodsignfordomesticfirmtoexpand.
Economicsituation
Japaniscapitalism.Accordingrelevantreport,Japaneseeconomicsituationisnotoptimistic.ThereisseriousinflationinJapan.90yearsago,Japanaccountedfor15.9percentofthetotaleconomyofthewholeworld,howeverin2011,droppedtoalittlemorethan8%andthetrendyetcontinues,whichdisplay,Japan’seconomicstatushasbeennotasbetterasprevious.TheotherpotentialriskoftheJapaneseeconomicsituationisunemploymentrateincreasegradually,whichisbadfordomesticfirmtoexpand.However,Japanalsohasmanyadvantageconducedtoexpanding,suchasadvancedtechnology,citizenwithgoodeducation,etc.Itischallengeandopportunityfordomesticfirm.
Belief/valuesystems
ThereisafamoussayingfromWorthington&Britton”acomplexsetofvalues,norms,beliefs,attitudes,customs,systemsandartefactswhicharehandeddownfromgenerationtogenerationthroughtheprocessofsocialisationandwhichinfluencehowindividualsseetheworldandhowtheybehaveinit”.Japanesemoralsystemalsoisrelativism,itisforaspecificrelationshipratherthanemphasizingabstractprinciples.ThereisnotgeneralethicalstandardbutthemostcomplexcumbersomerulesofbehaviorinworldinJapan.Japaneseneverjudgepersonfromanabsolutevaluesystem.ThecoreofJapanesebehaviorisrelative,whichaskdomesticfirmforoperate
withflexibilitybecauseinJapanesesociety,rightandwrong,goodandbad,beautyanduglyarepossibletotransform.
Language
Languageisaessentialfactoraboutexpanding.Wheninabusinessmeeting,useinappropriatewordswillmakemeetingshaltsometimes.InJapan,therearemanywaystocallaperson,butindifferentways,theinnermeaningisdifferent.Translatormustuserightwordscarefully.
Q2
DescribeanapproachthatcouldbeadoptedbyaninternationalbusinessoperatinginJapantoreducecommercialriskfrompoliticalissues
Thereare3formaboutpoliticalissues,discriminatorygovernmentintervention,expropriationrisk,violencerisk.AgriculturedoesnotoccupyanimportantpositioninJapaneseeconomy.Japaneseagriculturallaborinvestmentisrelativelyhigh,whilethegrainself-sufficiencyrateisrelativelylow.SodomesticfirmoperatedagricultureexpandingintoJapanisnotagoodidea.IronandsteelindustryisJapan'skeyinvestmentsector,thepaceofdevelopmentisfasterthanthemajorsteelproducingcountriesinEuropeandAmericawhichisadversefordomesticironandsteelfirmtoexpand.Inprecisioninstruments,Japanhasdominatestatus.Itischallengeandopportunity.Ifdomesticfirmproducemorepreciseproduct,thefirmwillgetvastadvantageforexpanding.
Toestablishpoliticalriskassessmentandearlywarningmechanismismethodtoreducecommercialrisk.Companycantakeavarietyofmethodstopredictthepoliticalrisksfromthetargetcountry,suchassystematicresearch,mathematicalmodelanalysis.However,Chineseauthoritiesnotificationsystemisstillverybackwardandtheconcentrationofpoliticalriskislow.Inthisconsequence,domesticfirmcanaskforworld-famousconsultingcompanysuchasRANDearly,andinfuture,therelevantdepartmentsofChinashouldactivelyintegrateallaspectsofthedata,toestablisharelativelyauthoritativeandcomprehensiveriskassessmentdatabase,sothatdomesticfirmreduceexpendituresaboutseekingthird-partyevaluation,andpromotethehealthydevelopmentofoverseasinvestment.
Q3
DescribeanapproachthatcouldbeadoptedbyaninternationalbusinessoperatinginJapantoreducecommercialriskfromcultureissues
Cultureissueincludeslanguage,education,socialstructure,religionetc.Religion-sharedbeliefsandritualsthatareconcernedwiththerealmofthesacred.MostJapanesebelieveinbothShintoandBuddhism,somestillbelieveinavarietyofreligionsandamongbelievers96%believeinS