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Global Business

1. What are the political risks for the countries in Japan? How will my understanding of the cultures of these countries help (or hinder) me from understanding and responding appropriately to these risks?

2. How effectively should someone negotiate with his or her peers in other countries? What do he or she needs to do to be more effective?

3. How does one's cultural background and sensitivity influence the degree to which he/she can appropriately identify the political risks in establishing a business in a new country? Explain.

4. What kinds of negotiations does financial institutions conduct within the organization? How are these negotiations similar to (or different from) negotiations with other organizations?

5. If a company new to the international arena were negotiating an agreement with a potential partner in another country, what basic steps should it be prepared to implement? Identify and describe them, including an explanation of why these steps are important.

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STEP 1
What are the political risks for the countries in Japan? How will my understanding of the cultures of these countries help (or hinder) me from understanding and responding appropriately to these risks?
The political risks in Japan are that the government is very slow in comparison to the Western standards and if one wants to do effective work in Japan one has to learn to be patient. For example, the construction of any building needs wading through endless laws, codes, rules and bureaucracy. The countries that want to be in Japan must learn the virtue of patience. Countries other than the US have another risk, Japan cannot say no to the US. Since the World War II, the US has tried to control several aspect of Japan, most importantly its export and import policy. During, the prime ministerial tenure of Mr. Koizumi he tried to implement several political reforms but the political parties turned these down. You need to understand the realities of doing business in Japan. Paying bribes is a part of the political culture of Japan and responding appropriately may make or break your chances of doing business in Japan. PM Koizumi is making reforms in finance, privatization, regulations and expenditure. However, these changes are slow and have not cleaned up the system as yet. Under the law, all citizens in Japan are equal and they cannot be discriminated against in terms of race, belief, gender and social status. These requirements are important for potential employers in Japan. If you discriminate, chances are that you will be sued against.

STEP 2
How effectively should someone negotiate with his or her peers in other countries? What do he or she needs to do to be more effective?

1. One can negotiate effectively with peers in other countries by being well prepared in the following:
2. The culture and customs of that country;
3. Information about the product or services that one wants to negotiate about;
4. Information about the current price, quality, distribution channels and methods of promotion in the foreign country;
5. Knowledge of the peer and his standing in terms of financial strength, political standing and ...

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