Background information of Japan
Japan lies in East Asia and is made up of several islands which lie between the northern Pacific Ocean and the Sea of Japan, east of the Korean peninsula. Japan has roughly a population of 125 million people who are packed compactly into a rather small geographic area. The official language in the country is Japanese. Japanese is spoken only in Japan. The literacy level in Japan is almost 100 percent with 95 percent of the population having attained high school education. Japan is governed by a parliamentarian democracy guided by the rule of a constitutional monarch. According to the Ministry of Foreign Affairs the Prime Minister is the chief government officer. The dominant religion is Shinto, which is unique to Japan. However, the Japanese have no official religion. When it comes to culture, the Japanese are in their ways. When a country or a state is interested in starting a business organization in Japan; it must solely be assured of success (Japan).Brief history of Japan
In 1603 Shogun Tokugawa (in order to protect his power) imposed isolation from foreign influences. The policy has ensured 250 years of stability in Japan and encourages the rise of local civilization. Kanagawa agreement with the US in 1854, made Japan to open its ports and to begin industrialisation and modernisation. During the 19th
centuries, Japan became a local power and managed to defeat the military powers of Russia and China, occupying Korea, Taiwan and the southern part of the island Sahalin. During World War II, Japan joined the Axis Powers, but following the war, it developed close ties with the US and the Europe. The Emperor is the sign of national unity (Japan).Japan-EU Relations
EU-Japan relations are impressive and are developing steadily in various areas of collaboration. The 1991 Political Declaration set the primary principles and specific common goals for these collaboration and further conformed a framework for yearly bilateral meetings (Ministry of Foreign Affairs).In the 2001 EU-Japan Summit, a 10 year plan of action was adopted to strengthen bilateral relations:Economical information of Japan
Close interrelation between the government and the countries businessmen, a sturdy work ethic and high technology have facilitated the country to become a strong economy worldwide. Currently there is a reduction in the full employment of the urban population. The industrial sector relays heavily on imported raw materials and fuel. The somewhat small agricultural segment is subsidised and protected by the state, with very high crop yield.For three decades, the country's rate of development was high, slowing in the 1980s, as a result of state intervention to avoid profiteering at the international stock exchange markets. Recently the economy has decelerated and this has been attributed to international economy recession the antique structure of the banking system in the country as well as it public utilities. However, programs of the Koizumi government, ranging from reforms in the banking sector and the public sector privatisation. These have contributed to the recovery of the Japanese economy (Ministry of Foreign Affairs).Japan's political and legal environment
No manager can afford to overlook the regulations and policies of the country from which he carries out international marketing transactions (Japan). Several regulatory or legal measures are target international activities are modeled to support domestic companies. U.S. government also encourages Japan to establish protection for Intellectual Property Rights such as:a) Policies & RegulationsViolations of intellectual property rights occur anywhere. In Japan goods are brought to the markets in ways not preferred by the manufacturers. The government therefore has the mandate to perform its duties in order to reduce trade barriers or to increase trade opportunities. b) Embargoes and Sanctions There are several governmental actions in the country that distort the free movement of trade in goods and services to the international market. Some of the prevalent issues that should to be addresses include economic sanctions which can force countries to behave peacefully in the global market or community. Unilateral sanctions in the country are not likely to since most governments often treat them as them as being free of cost (Japan).c)
Want an expert to write a paper for you?
Export Control mechanisms are developed by the Japanese government in order to inhibit or at least delay the acquisition of strategically important goods to adversaries.Similarly, just like in U.S. export control system is founded on an Export Administration Act, administered by the Department of Commerce, and the Munitions Control Act, administered by the State Department laws control all exports of goods and services. There are three departments that control exports in Japan which include: national security, foreign policy, and nuclear proliferation.d) Export License The international marketing consequences of export controls are significant. One country's firms are positioned at a competitive disadvantage with firms in other countries whose control systems are less inhibitive. A Changed Environment for Export Controls
a) Failure of the Iron Curtain, Disappearance of the Eastern Bloc the soviet union. b) Currently principal focal point of export controls have to rest on the Third World owing to nuclear technology and chemical weapons. c) Loosing of mutual bonds among the allied counries. d) Increased accessibility to high technology goods. The large availability makes any denial of these products further difficult to implement.Export management problems and conflicts a) Ongoing arguments on constitutes civilian utilization of products and military use products as well as dual utilization of products.b) To subject the export of physical goods only to surveillance is not enough. Transfer of technology and knowledge is also importantQuota System Policymakers experience various problems: a) The controls siphon a huge price from local consumers b) the overall economic efficiency is impacted upon by biased against consumers and protected groupsc) a downstream change also occurs in import compositionConclusion and recommendation
Diversification internationally will reduce the risk faced by a given return provided the correlation coefficient existing between the domestic and the foreign market is below one (i.e., less than 100 percent). Reduction in future correlation will lead to deeper risk reduction. Based on our results, a U.S. investor having a portfolio of U.S. stocks will face a little diversification benefit (risk reduction) by investing in Canada stocks since the cross correlation coefficients with the Canada market are rather large. On the other hand, the same U.S. investor will have improved diversification benefit through investing in the Japanese market (Yuvas). The same is true for a Canada investor. This is so because a Germany-Japan interrelation will bring about a better diversification than Germany-U.S. interconnection can. Similarly, investors in Japan will equally achieve desirable diversification of portfolio benefits if they invest in the U.S or Canada.I would really recommend that in accordance to two well-known theories in the finance literature, the Capital Asset Pricing Model (CAPM) and the Modern Portfolio Theory (MPT), which suggest that individual and institutional investors should hold a well-diversified portfolio to reduce risk. An institutional investor can realize a well-balanced portfolio due to the amount of funds in the portfolio is large enough for in-house diversification. Individual investors with limited affluence will have to find another way that does not require substantial funds to diversify their portfolios. Mutual funds can also offer a quick and somewhat inexpensive method to diversify for small investors and others.In the process of promoting the international cooperation, it is important that anyone interested in promoting business in Japan to have understanding and support of Japanese people. In schools also the education must be focused on the contributions to Japan's international cooperation aimed at developing the nation. At the same time, people should be able to carry out effective global cooperation in order to reduce poverty as well as generating other socio-economic achievements.Japan should also use the knowledge as well as human resources in exploring and having better arrangements for projects that can satisfy the needs of the nation and those that are vital or important to Japan's international cooperation efforts. This is because without the better managed projects then the international cooperation does not have any effect on the development of the nation. It is also vital to slash operational costs which if not manged well is likely to damage Japan's total business power in the long run. Lastly, there should be the use technical knowledge that requires that people be trained so as to be passionate and proud with whatever they are doing and their job.