Abstract In recent decades, the world economy has undergone an unprecedented level of integration. Previously, I have provided a list of knowledge management tools that can be utilized to analyze many questions and trends, as well as the reason why these tools are important in the global economy. These tools are essential of international relations as being able to examine global problems beyond the headlines. This paper further demonstrates how these tools could be applied to solve the problem or to bring the business opportunity to fruition in today's Japanese business environment. During the 1990s, Japan has been exposed to one of the most difficult structural transition periods in its post-war history, in terms of social and economic conditions. There have been two major changes: one is a substantial decline in economic growth in real terms, and the other is a changing social structure characterized by the declining birth rate and the ageing population. Under the pressure of changes in the economic environment caused by globalization and innovations in information technology, Japanese business corporations are forced to adapt to the new situation. While companies faced with fierce international competition, it became more critical to understand the basic knowledge of complicated legal, cultural, economic, and social issues. Engaging in international trade also requires attention to international regulations, international business planning, international market research, funding, distribution and other areas that must be considered separately from domestic business issues. The paper suggests some of the basic tools that can apply to solve the problem or to bring the business opportunity to fruition in today's Japanese business environment International Trade Theory Export trends have been an important factor during Japan's present economic adjustment period, and the structures of Japanese exports, together with the imports, have been changing substantially in recent years. The changes in the country's export and import structures during the 1990s can be characterized by the following three key developments: (1) the weight of IT-related goods has been rising in both real exports and imports; (2) real imports of consumer goods from East Asia has been increasing; and (3) the US remains Japan's largest trading partner as a single country. Due to these factors, maintaining its comparative advantage became the priority in the current global economy. Comparative advantage is a dynamic concept. It can and does change over time. Some businesses find they have enjoyed a comparative advantage in one product for several years only to face increasing competition as rival producers form other countries enter their markets.
The signing of the US treaty by Townsend Harris in 1858 opened more of the Japanese ports to trade, and also fixed tariffs. “The West made the Japanese agree that Western countries would determine import tariffs. This place, Japan at a distinct economic disadvantage in its ability to be competitive domestic or internationally.” (Woods, SW. (2004).
Within a generation, Japan had become an economic force and the dominant power in the Pacific. Megacorporations called zaibatsu evolved and diversified their way to economic dominance, developing ties with the government and the military through their procurement activities. Meanwhile, d...
However entering into a market as different as Japan is not without its risks, and must be ensured to be successful, with the help of market research, marketing, and operational theories, lest the new venture become a very costly mistake.
A comparative advantage occurs when a country takes the least amount of time for the certain good/service to be produced when compared to other countries. When the United States is compared to countries A (Developing) and C (Developed), it has the comparative advantage when concerning the agricultural products of corn and citrus (Table One). The United States has the
The world of the healthcare environment is fast-paced and implementation of new healthcare technology requires an organization to have a strategic management plan. Subsequently, in order to start building the strategic management plan one must understand the external competitive forces that influence a strategic management plan by doing an environmental analysis, which is the first step involved with strategic planning and strategic thinking to understand the external environment (Ginter, Duncan, & Swayne, 2013, p. 40). Environmental analysis involves assessing the “trends, events, concerns in the general environment and in the healthcare industry, and the service area” (Ginter et al., 2013, p. 41). Moreover, environmental analysis attempts
...s such as semi-conductors for automobiles, and chemicals. Its Imports totaled $350 billion which included fuels, textiles, and food products. Due to Japans rocky terrain agriculture makes up on 1% of its GDP. China reported exports of $232 billion and imports of $197 billion. Exports include footwear, toys, and sporting goods. Imports include machinery, iron, and steel. Obviously these exports and imports also show the difference in tier workforces both nations hold. Only 26% of the Chinese labor force works in the service industry while Japan boasts 65%. This is most likely brought about from China’s planned socialism policies. Both governments economic planning also severely affects each populace’s standards of living. Because of Japanese free enterprise, consumers have more freedom in allocating their savings into enjoying more non-essential commercial products.
Comparative advantage means that an industry, firm, country or individual are able to produce goods and services at a lower opportunity cost than others which are also producing the same goods and services. Also, in order to be profitable, the number in exports must be higher than the number in import. From the diagram we seen above, Singapore is seen to have a comparative advantage in some services. The services are Transport, Financial, business management, maintenance & Repair and Advertising & Market Research, etc. These export services to other countries improve the balance of payment. On the other side, Singapore is seen to have a comparative disadvantage in some services. The services are Travel, Telecommunications, Computer & Information,
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s
Comparative advantage will help us to achieve a better way of life. We must look at the world and different countries and ask what they can bring to the world market. Comparative advantage is the way of producing goods in the future. The model of comparative advantage shows us what
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
Introduction With today’s rate of development in technology, there has also been an immense increase in global information sharing. Innovations in technology and design seem to be emerging in the market almost every month. One of the key aspects of any business is to gather, organize and efficiently apply this information. According to Antonic (2005), economic assets are fast becoming of secondary importance in the market as companies ascribe more importance to intellectual capital. With the right application of knowledge management methods, companies can achieve a competitive advantage by managing the immense amount of information available (Balanced Scorecard Institute, 2002).
Reflected in its policies and attitudes toward business are a government's idea of how best to promote the national interest, considering its own resources and political philosophy. A government controls and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here are steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient political features of global markets they plan to enter.
In Japan, there are more makers of civilian industrial products than there are anywhere int his world. Hence, the competition in domestic is fierce and makes consumer the king. Akio points out that due to the competition in local markets, these companies develop the ability to compete in international markets. These companies engage in all kinds of electronics, automobiles, cameras, home appliances and the
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
It is no secret that when it comes to technology, the United States and Japan have been constantly at war. Now that Japan is entering the age of he Internet, this competition is becoming fiercer than ever. The Internet market is beginning to restructure Japan's economy, and a " restructured Japan is going to be an immensely powerful competitor in all sorts of markets." (Rohwer 115) The pricing and availability of Internet access, is one area in which Japan is beginning to excel, soon they will be able to undercut their American competitor in both ways. The sheer amount of products available on the Japanese Internet is growing by leaps and bounds everyday, and the American market will have to catch up, or drop out.