...will have a comparative analysis of starting operations on establishing a Greenfield production facility overseas. This comparative analysis will include the countries’ currencies, trade policies, culture, and a recommendation with a supporting rational for the country selected. Global Financial Management Introduction Acme, a U.S. multinational enterprise, is planning the stages of establishing a Greenfield production facility overseas. Acme is expanding its international program. The two selected foreign countries for which the steering committee has proposed to start operations in are Germany and Japan. A comparative analysis between the two counties will include the currency of each country, trade policies, and cultural variables that can affect the operations and profitability of the production facility. This paper is meant to discuss which of the two countries are recommended to begin the production facility in. Germany Germany, a federal republic, has the largest population of all the European Union, or EU. Germany has the world’s third largest economy, and it produces automobiles, engineering products, electronic equipment, communications equipment, chemicals, and pharmaceuticals. The most widely spoken language in the EU is German (Germany, Europa, 2013). Currency / Trade Because Germany is a part of the EU, its currency is the euro. Germany has relatively few non-tariff barriers and has an intact three-tiered system of public, private, and cooperative...
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...Abstract Japanese invaders occupied the city of Nanjing in 1937, a day forever etched in blood, pain and tears. The debate between Asia's two largest economies over the history of World War II has become an ongoing battle over which nation will become the region's dominant power. Primary Issues Between China and Japan According to the Council on Foreign relations, tensions between the two countries date to the humiliation of China in the Sino-Japanese War. These animosities surfaced in recurring cycles, often involving Chinese anger over Japan’s perceived lack of contrition for wartime crimes (Beehner & Bhattacharji, 2008). The history of World War II remains disputed, and China and Japan face challenges on how to move forward from the past. Growing tensions fueled when a Japanese history textbook distorted historical events surrounding the Nanjing Massacre. Further problems such as territorial and economic issues aggravated the relationship, including Japan’s close alliance with the United States, economic rivalry, trade frictions, and disputes over ownership of islands in the East China Sea. Recently a Chinese trawler collided with Japanese Coast Guard patrol boats near the Diaoyu Islands and resulted in a major diplomatic dispute between the two nations. The rivalry between the two countries continued, when China flexed its muscle to oppose a move to elevate Japan, into permanent membership on the United Nations Security Council. Chinese Government Extends Olive...
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...the basis and mechanism of the Japanese economic miracle between 1945 and 1980? Introduction The aftermath of World War 2 including war time expenses left the Japanese economy on the borderline of ruin. Inflation, unemployment and all area shortages bring risk of a communist state being created through a soviet influence that was expanding across the pacific regions. If no governmental changes or outside influence occurred it could have ended up as a Soviet state. This led to American intervention to stop the Soviet Union gaining more power and to rebuild Japan. America started off the rehabilitation by occupying the country giving aid and assistance which was followed up by interventionism by the Japanese government leading to huge privatisation and capital projects funded by Japanese businesses encouraged to invest; kick-starting an economic rejuvenation. How each stage of the recovery is implemented will be discussed in further detail in each section including American Intervention, Japanese government intervention, MITI (Ministry of International Trade and Industry)/Keiretsu and the overview of the ‘Golden Sixties’. American Intervention The American government under order of SCAP (Supreme Commander of the Allied Powers) intervened by occupying Japan to prevent Soviet communism from commencing and to help rebuild the Japanese economy with a view to democratize and demilitarise the country. Special procurements were paid to the Japanese government due to military hostilities...
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...International business and management Topic: Japanese export and trade patterns in view of Heckscher–Ohlin theory Prepared by student of 17OMA-01/15ФА group Of intramural Master’s program Of Faculty of Finance First year Usacheva P.A. Moscow - 2016 Japan has the world's second largest developed economy, it’s ranked 4th-largest in the world by GDP based on purchasing power parity (PPP). Japan is a member of the G7 and such trade organizations as Asia-Pacific Economic Cooperation (APEC), World Trade Organization (WTO), OECD, etc. Based on statistics from the International Monetary Fund’s World Economic Outlook Database, Japan’s total Gross Domestic Product amounted to $4.83 trillion in 2015. Exports from Japan amounted to US$625.1 billion in 2015, down -25.1% since 2011 with a -9.5% decline from 2014 to 2015. Therefore, exports accounted for about 12.9% of total Japanese economic output. Given Japan’s population of almost 127 million people, its total $625.1 billion in 2015 exports translates to roughly $4,925 for every resident in the island nation. Japan’s unemployment rate was an estimated 3.4% by 2016. Japan is the world's largest creditor nation as well as having the highest debt per GDP. As of 2015, 54 of the Fortune Global 500 companies are based in Japan. The goods that Japan has exported have changed over time, from natural resources and agricultural products to manufactured goods, textiles, steel, and cars. Time period | Japanese export | 13-15th centuries (trading...
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...wasn’t open to trade with many countries. They traded only with select groups from The Netherlands and China. This was due to constant attempts by European countries to convert them to Catholicism and unfair trade deals. The U.S saw opportunity in trading with Japan because of its useful position in the Pacific as well as the large amount of coal located in Japan. The coal would be very useful to U.S steam ships, which require large amounts of coal, looking to refuel on their way to China so...
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...newly modernized Meiji government of Japan sought to join these colonizing efforts and initiated discussions (Seikanron|(lit. "subdue Korea")) in Japan in 1873. This effort was allegedly fueled by Saigō Takamori and his supporters who insisted that Japan confront Korea's refusal to recognize the legitimacy of Emperor Meiji as ruler of the Empire of Japan, as well as for supposed insulting treatment meted out to Japanese envoys attempting to establish trade and diplomatic relations. In fact the debate concerned Korea, then in the sphere of influence of China's Qing Dynasty which elements in the Japanese government sought to separate from Chinese influence and establish as a Japanese satellite.[8] Those in favor also saw the issue as an opportunity to find meaningful employment for the thousands of out-of-work samurai, who had lost most of their income and social standing in the new Meiji socioeconomic order. Further, the acquisition of Korea would provide both a foothold on the Asian continent for Japanese expansion as well as a rich source of raw materials for Japanese industry. The arguments against such designs were outlined in Okubo Toshimichi's "7 Point Document", dated October 1873, in which he argued that action against Korea was premature as Japan, itself, was in the stages of modernization and an expedition would be far too costly for Japan to sustain. Okubo's views were supported by the anti-war faction, which mostly consisted of those returning from the Iwakura Mission...
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...Trade between China and Japan is worth about $345bn (£212bn). That alone, stands as a significant portion of trade, investment, and revenue. Short-term revenue, for example would be a one-time exchange of trade whereas long-term revenue would be long-term trade obligations between two business or parties. The full terms of the obligation are usually carried out over more than one year. Some industries are heavily dependent upon long-term revenue for sustained profits and to pay for basic operating costs. Long-term revenue, however, is not simple to define because it can mean different things in different industries. [http://smallbusiness.chron.com/definition-longterm-revenue-38225.html] Let's take a look at how Japan's economy and trade as well as long-term revenue has been hit as a result of the conflict over the Diaoyu Islands. Japan has the world’s third largest economy, and is the second largest holder of US treasury bonds. It has a large impact on global commodities and energy: it is the largest importer of liquid natural gas (LNG) and third largest importer of crude oil. Despite its financial troubles, it still carries considerable weight in financial global institutions like the IMF, the World Bank, and the World Trade Organization. However, Japan's economy contracted in the latest quarter, signaling that like Europe it may already be in recession, further weighing down world growth. Japan's outlook remains bleak, with most economists forecasting a further decline in...
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...In Giles Milton’s novel, Samurai William, the reader is taken to the other side of the globe to experience the history of old world Japan. Though out the book, Milton provides reason for complex historical events and actions, while still communicating the subtleties and mysterious customs of the Japanese. The novel also closely examines the wide range of relationships between different groups of Europeans and Asians, predominantly revolving around the protagonist, William Adams. The book documents the successes and failures that occur between the two civilizations, then links them back to either the positive or negative relationship they have. As the book goes on, the correlation is obvious. Milton shows us the extreme role that religion, etiquette and trade played in establishing positive relations between visiting Europeans and the Asian civilizations. Religion and traditions played a chief role in the Europeans relationships in Asia all throughout the novel. Milton puts an incredible weight on the shoulders of religion on both sides of the civilisations. The book dives right into explaining the fascination and disgust felt by European priests and Jesuits towards the Japanese monks. They carried rosaries like the Catholics and “in old age, many retired to Buddhist monasteries to live the rest of their days in prayer and contemplation”. The Buddhist All-Souls Day consisted of the ceremonial sprinkling of graves with flower petals. All of this appealed to the Catholic Jesuits...
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...Matthew Perry’s Exchange with Japan made great contributions to trade not only in Japan, but with the rest of the world. Commodore Perry was a sailor, diplomat and an advocate of the naval steamship. He was apart of the United States Navy for forty-two years. Commodore Perry was the first westerner to visit the islands of Japan.The United States had a goal of reopening the trade ports in Japan with the rest of the world. For the United States, Japan would serve as a place for their steamships to restock their coal supply. Also, the United States wanted to assure that shipwrecked Japanese sailors got ample treatment. The third reason was simply trade. Japan would be...
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...presently professor of history at the University of Tampa. The thesis of the whole book is to convince the reader that both drug trafficker and their political allies were consummate opportunities. As long as there is a demand for drugs and drugs in demand are illegal, traffickers will seek out and establish alliances with politicians. The drug trade is not the product of a global conspiracy and there is no central command and control and no master plan to destroy and population or group. The thesis of the book is significant. Based on opportunists’ point of view, the authors wrote all the chapters from a relative objective point of view, which means that they treat the origin, spread, development, and the fall of drug trade as the result of supply, demand, profit and power. The book “Webs of Smoke” contains an introduction and eight chapters and a conclusion at the end. Each chapter is relative independent from each other. The introduction part, “Men in the Shadows” talks about the background of narcotics business and the origins of the opium trade. Chapter one, “Bureaucrats” talks about the international debate on illicit trade in China and some international organizations like League of Nations. Chapters two, “Merchants” focus on how Shanghai and Yunnan became a...
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...be Japan. There are many reasons as to why this would be beneficial to Webster Incorporated. Historically, Japan and Canada have had high levels of exchanges, all the while maintaining a stable relationship. Trade between the Japanese-Canadian markets has been approximately equal in terms of importation and exportation. The most important factor of this being that one of Canada's major exports to Japan is lumber. Currently, there is a trade agreement between the two; the “Innovative Japan-Canada Economic Framework” was launched in 2005 to maximize the Japan-Canada economic relations and cooperation (Ministry of Foreign Affairs of Japan, 2011). More recently, in June of 2010 the customs administrations of Japan and Canada have signed the Mutual Recognition Agreement on Authorized Economic Operator programs. This program has allowed simplified and fast-tracked customs proceedings (Ministry of Foreign Affairs of Japan, 2011). These proceedings will contribute to furthering secure and facilitated trade between the two countries. In addition, a free trade agreement is being developed between the two nations to eliminate the barriers of trade; this would essentially lead to substantial growth for the countries markets and businesses (Foreign Affairs and International Trade Canada, 2011). Due to recent occurrences in Japan, including the devastating impact of the tsunami, there is a high demand...
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...company creating value for its shareholders by pursuing an international expansion strategy? -Starbucks expects the foreign opportunities. At the 1990’s, Asia didn’t have any coffee shop markets. Moreover, coffee culture is not friendly to Asian. Someone thought Starbucks’s adventure doesn’t achieve. However, Starbucks used the “Starbucks experience” in North America, which coffee stores became places for relaxation, chatting with friends, reading the newspapers, holding business meeting, or browsing the web. This experience smashes to Asian customers. 3. Why do you think Starbucks decided to enter the Japanese market via a joint venture with a Japanese company? What lesson can you draw from this? -I think that Starbucks’s strategy, which is joint venture with a Japanese company, is really good idea. There are some reasons. First, Starbucks doesn’t know Japanese culture and situations of business and economy. A joint...
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...respect to the sweeping changes recently seen in developed market demographics. Most U.S. state economic development agencies are also well aware of the important foreign direct investment coming into their communities from Japan. While the reasons U.S. firms engage with Japan are diverse, savvy firms recognize that underestimating the strategic and tactical importance of the Japanese market may disadvantage them not only in Japan, but in the United States and third-country markets as well. Japan is back in the business news headlines in 2013, owing in part to a rising stock market, a sharply lower yen, and stirrings of domestic demand for both personal consumption and capital investment. The new economic policy linked to these developments is known as “Abenomics”-- a three pronged strategy of bold monetary loosening, fiscal stimulus centered on infrastructure spending, and growth-oriented structural reform. While the implications and ultimate success of this strategy in reigniting growth in Japan are far from certain, it has drawn considerable attention from U.S. businesses. In April 2013 the U.S. and Japanese governments agreed on a package of actions and agreements that pave the way for the Obama Administration to support Japan’s participation in the Trans-Pacific Partnership (TPP). With Japan’s participation in the TPP, its members would account for nearly 40 percent of World GDP. Moreover,...
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...| Japanese FDI in the white goods sector in India | | IMI DelhiRohit AgarwalPGDM 2011-1306/01/13 | Contents Ownership Advantage 3 Location Advantage 4 Internalization Advantage 5 Government initiatives/ polices then and now 5 Before 1990: Pre Liberalization Era 5 1991-2000: Post Liberalization Phase-1 6 2000-Onwards: Post Liberalization Phase-2 6 Japanese Investment in India - Past and Present 8 Overseas Development Assistance (ODA) 8 FOREIGN DIRECT INVESTMENT (FDI) FROM JAPAN 8 SECTOR-WISE DISTRIBUTION OF FDI INFLOWS 8 Why was Japanese FDI less? 9 India as a manufacturing hub for global exports 10 R&D facility in India 11 Japanese vs. Koreans (Strategies to replace the incumbent Koreans) 12 Summary 13 References 13 The FDI decision of a firm is guided by the OLI model as discussed by Dunning. We tried to study the OLI advantages enjoyed by the Japanese firms that invest through FDI in India. We studied the Japanese firms in the white goods industry namely Sony, Daikin, Hitachi, Sharp, Toshiba and Panasonic. Ownership Advantage Most of these firms, when it comes to ownership or firm specific advantages score very high. They have a wide array of monopolistic advantages like patents, IPR, brand name as well as advanced technology advantages as a result of huge R&D facilities at home and other locations. These firms also enjoy economies of scale and scope. They also benefit from the international diversification of risks...
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...this war? The answer to that question, from the American perspective is simple: the Japanese bombed Pearl Harbor. The Americans were angry at the Japanese for their invasions of first Manchuria (1931), then China (1937), and later French Indochina (1940). After the Japanese moved into Indochina, President Roosevelt ordered a trade embargo on American scrap steel and oil, on which the Japanese military depended. But the American people felt that Asia was far away, and a large majority of voters did not want to go to war to stop Japan. The surprise attack on the Pacific fleet at Pearl Harbor on December 7, 1941 changed this, outraging was the prevailing sentiment among Americans, along with a pretty unanimous belief that it was time to go to war with Japan. Why did Japan decide to attack the United States? This question is a little bit more complicated. Japan was fully aware of the fact that the United States was economically and militarily powerful, but it was not afraid of any American attack on its islands. Japan did worry however, that the Americans might help the Chinese resist the Japanese invasion of their country. When President Roosevelt stopped U.S. shipments of steel and oil the Japan, he was doing exactly this: the Japanese are dependent on other countries for raw materials because they have almost none on their archipelago. Without the ability to import oil and steel, the Japanese military could not fight for very long. Without oil, the navy would not be able to move...
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