Pest Analysis of Japan
PEST Analysis of Japan
Political Environment
- Political Stability and Absence of Violence/Terrorism ranked Japan in 44th with +0.94 score(less violent and more stable). Japan also was ranked in 31st with +1.25 scores in complete absence of corruption [1]
- Restrictions access harmful published materials and allow regulate excessive disruption of social order but no restrictions on access to the internet [2]
- Industrial policies influenced specific industries to gain international competitive advantage, increase productivities and industrial investment.[3]
- Inflexible labour market because of lifetime employment guarantees and seniority-based salaries [4]
- Japanese government related organization(Jetro) support foreign companies to expand and invest in Japan and some special Zones corporate has special advantages ,such as, income tax deductions of 20%, investment tax credits or special depreciation and special tax ratio [5][6]
- no re-entry permission when re-entering Japan within 1 year and cancel Alien cards, using a residence card instead [5]
Economic Environment
- The fourth-largest economy in the world after second-place China [8]
- Word rank in economic : 22nd Asia–Pacific region rank: 7th from 41st [8]
- Economic freedom score: 71.6 from 100 , good in all area(means more freedom, it is 1.2 point lower than 2011 because of government spending’s control)[8]
- GDP (PPP): $4.3 trillion 3.9% growth; 0.1% 5-year compound annual growth;
$33,805 per capital and GDP declined almost 0.5% in 2011 because disaster [8]
- Unemployment: 5.1% Inflation (CPI): -0.7% FDI Inflow: $-1250.9 million[8]
- Free trade agreement with EU and others[8]
- Industry, value added (% of GDP) : 27.4% [7]
- Large and growing public debt (205.5% of GDP (2011 est.) from restructuring the economy [6]
- Economic expansion is driven by export and the economy is a same size as in 1992 because government taxation and failed stimulator spending.[6]
- Japanese financial
Political Environment
- Political Stability and Absence of Violence/Terrorism ranked Japan in 44th with +0.94 score(less violent and more stable). Japan also was ranked in 31st with +1.25 scores in complete absence of corruption [1]
- Restrictions access harmful published materials and allow regulate excessive disruption of social order but no restrictions on access to the internet [2]
- Industrial policies influenced specific industries to gain international competitive advantage, increase productivities and industrial investment.[3]
- Inflexible labour market because of lifetime employment guarantees and seniority-based salaries [4]
- Japanese government related organization(Jetro) support foreign companies to expand and invest in Japan and some special Zones corporate has special advantages ,such as, income tax deductions of 20%, investment tax credits or special depreciation and special tax ratio [5][6]
- no re-entry permission when re-entering Japan within 1 year and cancel Alien cards, using a residence card instead [5]
Economic Environment
- The fourth-largest economy in the world after second-place China [8]
- Word rank in economic : 22nd Asia–Pacific region rank: 7th from 41st [8]
- Economic freedom score: 71.6 from 100 , good in all area(means more freedom, it is 1.2 point lower than 2011 because of government spending’s control)[8]
- GDP (PPP): $4.3 trillion 3.9% growth; 0.1% 5-year compound annual growth;
$33,805 per capital and GDP declined almost 0.5% in 2011 because disaster [8]
- Unemployment: 5.1% Inflation (CPI): -0.7% FDI Inflow: $-1250.9 million[8]
- Free trade agreement with EU and others[8]
- Industry, value added (% of GDP) : 27.4% [7]
- Large and growing public debt (205.5% of GDP (2011 est.) from restructuring the economy [6]
- Economic expansion is driven by export and the economy is a same size as in 1992 because government taxation and failed stimulator spending.[6]
- Japanese financial
References: [1] Encyclopedia of the Nations (2008). Governance Score (-2.5 to +2.5) Worldwide Governance Indicators. Available at: http://www.nationsencyclopedia.com/WorldStats/WGI-control-corruption-governance-score.html/ [Accessed: 7 November 2012]. [2] Freedom House (2011) ‘Freedom of the Press 2011’, Japan [Online]. Available at: http://www.unhcr.org/refworld/docid/4e7c84f4c.html/ [Accessed: 7 November 2012]. [3] Ronald E. Dolan and Robert L. Worden (1994) ‘A Country Study’, Japan [Online]. Available at http://countrystudies.us/japan/99.htm/ [Accessed: 7 November 2012]. [4] Terry Miller, Kim R. Holmes and Edwin J. Feulner (2012) ‘Index of Economic Freedom’, Promoting Economic Opportunity and Prosperity [Online]. Available at http://www.heritage.org/index/country/japan 2012/ [Accessed: 7 November 2012]. [5] Japan External Trade Organization (2012) ‘Invest Japan Department’, 3 windows on Japan [Online]. Available at: http://www.jetro.go.jp/en/invest/whyjapan/pdf/3_windows20120911_en.pdf [Accessed: 7 November 2012]. [7] The World Bank (2010) ‘World DataBank’, World Development Indicators and Global Development Finance [ONLINE]. Available at: http://databank.worldbank.org/Data/Views/Reports/TableView.aspx?IsShared=true&IsPopular=country/ [Accessed: 10 November 2012]. [8] Central Intelligence Agency (2012).The World Factbook. Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html/ [Accessed: 8 November 2012]. [9] Pankaj G. and Sebastian R. (2011) National Cultural Differences and Multinational Business [10] Ministry of Land, Infrastructure and Transport (2006) White paper on land, infrastructure and transport in Japan. Available at: http://www.mlit.go.jp/common/000027168.pdf [Accessed: 10 November 2012]. [11] Hiromi Y. (2005) ‘Japanese R&D Draws More Attention’, Japan Economic Monthly