Japan country risk analysis Assignment Example | Topics and Well Written Essays - 2000 words

japan farming peril analysis - Assignment ExampleIndeed, the market has experienced a growth step of 2.8% at the end of 2012 that has been stimulated by domestic consumption (Global Edge, 2013). This is as shown in the graphical federal agency from IMF below. Source (IMF, 2012). Source (IMF, 2012). Consequently, this reflects that the domestic demand of commodities is expanding positively to enhance the sales for organizations operating in Japan. This essence that Japan is a vital place for multinationals to locate since it is able to enhance their sales revenue repayable to the rising local consumption that is currently experiencing shrinkage in many countries worldwide. Indeed, a market community of 127.8 million coupled with the rising private demand in the market, Japanese market promises to be the topper destination in the global market for multinationals. However, the deflation or the fall in prices in the market (0.3%) as indicated in the table above has threatened the savings in the economy that is vital in promoting the accessibility of credit for the investors entailing to set up new or employ assembly linees in Japan. Nevertheless, the proposal by the semipolitical sympathies to increase the consumption tax has seen the households opting to save more which has pushed the saving to 6% currently form the forward 2.2% on their disposable income (S$P, 2011). Thus, the credit market is experiencing a rising deposit to enable foreign investors to gain credit to set up their business. Furthermore, the economic strength of Japan is one of the crucial factors that make the country one the best attractive destination for multinational organizations globally stimulating a concrete mass surplus (SEB, 2012). Owing to the surplus and steady balance of payment structure, the country is experiencing a reserve aim that is the... In assessing the viability of locating or starting a business in a foreign country, a country endangerment analysis is vital in allowing investors to identify associated risks or opportunities that might affect the business in future. This is because a country risk analysis undertakes an in depth investigation on the economic, political and social factors that affects the financial and strategic derailment to the firms in realizing their business objectives (Wagner, 2012). This helps the investors in realizing the profitability and sustainability of a business they intend to start in a given country. The country risk analysis of Japan shows that the country has a mixed signs of attractiveness to multinational organization intending to expand their international territory. This is shown by its favorable economic risk rating due to its economic environment the country offers to prospective multinational firms. In contrast, the political risk depicts a negative environment due to the current political tensions surrounding the future stability of the country. Furthermore, the develop population of Japan rev eals a destination that may be expensive in acquiring an powerful and efficient fetch force. However, the education system of Japan has the capacity of producing the best effective and efficient work force in the global market. Nevertheless, Japan has shown that it is capable of supporting the profitability and survival of multinationals even by and by tragic series of events. This means that Japan offers a good destination for multinational firms seeking to expend their international territory operation.