Explore BrainMass

Doing Business in Japan - What are the issues?

Japan is currently in a period of transition. The boom days of the 80s/90s are over and growth rates are low. What are the issues that someone wishing to do business in Japan should consider at this point in time?

This is a short answer which outlines the key issues facing a potential investor as of 2005.

Solution Preview

Japan - From a corporate perspective, what are three major strategic challenges that companies will face in doing business in Japan during this transitional time?

Japan is an economy which is currently undergoing many issues. After a period of rapid growth Japan is now struggling to adapt its economy towards success in this new millennium. For any potential corporate investor in Japan there are a myriad of issues to consider. Three key points are highlighted below.

Economic Stagnation:
Japan is currently undergoing a period of deflation and economic stagnation brought about in some part by the Government's monetary and fiscal policies of the last 10-15 years. Any potential corporate investor would have to consider the attractiveness of the market as it currently stands. Is there sufficient demand for the product to be profitable?
Furthermore, in a period of instability it may be wiser to adopt a wait and see approach, especially with deflation lowering prices each year. A key question for any corporate ...

Solution Summary

The 663 word solution presents an excellent response to the question with three major categories of issues outlined and explained.