1、Political stabilityEconomic situationBelief/value systemsLanguagePolitical stability is the first and foremost factor about expanding into overseas market which offer a stable condition for business. For example, if there is war in the place of overseas market or society is unrest, the business will
2、 not operate normally because local citizen do not have interest of making economic activities. Conversely, if it is peaceful and citizen do not worry about threatening policy from government there, the domestic firm wanting to expand will operate steady. In Japan, in recent years, the relationship
3、between China and Japan is unfriendly and Japanese government took a tough stance against China, which is not a good sign for domestic firm to expand.Japan is capitalism. According relevant report, Japanese economic situation is not optimistic. There is serious inflation in Japan. 90 years ago, Japa
4、n accounted for 15.9 percent of the total economy of the whole world, however in 2011, dropped to a little more than 8% and the trend yet continues, which display, Japans economic status has been not as better as previous. The other potential risk of the Japanese economic situation is unemployment r
5、ate increase gradually, which is bad for domestic firm to expand. However, Japan also has many advantage conduced to expanding, such as advanced technology, citizen with good education, etc. It is challenge and opportunity for domestic firm. There is a famous saying from Worthington & Britton”a comp
6、lex set of values, norms, beliefs, attitudes, customs, systems and artefacts which are handed down from generation to generation through the process of socialisation and which influence how individuals see the world and how they behave in it”. Japanese moral system also is relativism, it is for a sp
7、ecific relationship rather than emphasizing abstract principles. There is not general ethical standard but the most complex cumbersome rules of behavior in world in Japan. Japanese never judge person from an absolute value system. The core of Japanese behavior is relative, which ask domestic firm fo
8、r operate with flexibility because in Japanese society, right and wrong, good and bad, beauty and ugly are possible to transform.Language is a essential factor about expanding. When in a business meeting, use inappropriate words will make meetings halt sometimes. In Japan, there are many ways to cal
9、l a person, but in different ways, the inner meaning is different. Translator must use right words carefully.Q2Describe an approach that could be adopted by an international business operating in Japan to reduce commercial risk from political issuesThere are 3 form about political issues, discrimina
10、tory government intervention, expropriation risk, violence risk. Agriculture does not occupy an important position in Japanese economy. Japanese agricultural labor investment is relatively high, while the grain self-sufficiency rate is relatively low. So domestic firm operated agriculture expanding
11、into Japan is not a good idea. Iron and steel industry is Japans key investment sector, the pace of development is faster than the major steel producing countries in Europe and America which is adverse for domestic iron and steel firm to expand. In precision instruments, Japan has dominate status. I
12、t is challenge and opportunity. If domestic firm produce more precise product, the firm will get vast advantage for expanding. To establish political risk assessment and early warning mechanism is method to reduce commercial risk. Company can take a variety of methods to predict the political risks
13、from the target country, such as systematic research, mathematical model analysis. However, Chinese authorities notification system is still very backward and the concentration of political risk is low. In this consequence, domestic firm can ask for world-famous consulting company such as RAND early
14、, and in future, the relevant departments of China should actively integrate all aspects of the data, to establish a relatively authoritative and comprehensive risk assessment database, so that domestic firm reduce expenditures about seeking third-party evaluation, and promote the healthy developmen
15、t of overseas investment.Q3Describe an approach that could be adopted by an international business operating in Japan to reduce commercial risk from culture issuesCulture issue includes language, education, social structure, religion etc. Religion - shared beliefs and rituals that are concerned with the realm of the sacred. Most Japanese believe in both Shinto and Buddhism, some still believe in a variety of religions and among believers 96% believe in S
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