China Pest Analysis Paper
When doing business in another country, it is very important to know and understand the politics, especially in a foreign country. There are four challenges in particular that stand out: 1. The North Korean nuclear threat
2. Japan–China tensions surrounding the Senkaku Islands.
3. The Japan and South Korea relations also further deteriorate after former South Korean President Lee Myung-bak’s visit to Takeshima.
4. Territory disputes over the East China Sea that has escalated leaving China and Japan disputing over the islets.
The United States has declared that it will stay neutral over the islets and opposes to use any force or unilateral efforts in order to change the current status quo. The company will also need to ensure …show more content…
The weak yen and strong economic growth in the U.S. are behind the recovery in exports,” said Minoru Nogimori, an economist at Nomura Holdings Inc. and will lead Japan’s economy, especially in the first half of this year before the Fed raises the policy rate (Bloomberg, 2015). Exports to the U.S. have risen almost 24 percent, while those to the European Union climbed 6.8 percent and shipments to China were up 4.3 percent. Exports increased by 12.9 percent in December last year, the most in a year helped by a weak yen and pickup in overseas demand (Kajimoto, 2015). This was the highest seen in the last six …show more content…
The chart seen in figure 5 demonstrations the ratio of government debt to gross domestic product (GDP). This rating is the highest in the industrial world, which is about double in comparison to other countries. As previously stated the 2015 forecasts shows a 1.5% growth in GDP and an additional 0.3% 5-year compound annual growth. This information is critical in making a decision to do business in Japan. Japan 's economic growth accelerated swiftly at the beginning of this year, the most concrete sign yet that new stimulus policies sparking euphoria in financial markets are starting to lift companies and