最新HND地理outcome2资料

Q1

In about 750-1000 words explain the influence that all of the following factors would have on a domestic firm expanding into a major overseas market such as Japan.

¨Political stability

¨Economic situation

¨Belief/value systems

¨Language

Political stability

Political stability is the first and foremost factor about expanding into overseas market which offer a stable condition for business. For example, if there is war in the place of overseas market or society is unrest, the business will not operate normally because local citizen do not have interest of making economic activities. Conversely, if it is peaceful and citizen do not worry about threatening policy from government there, the domestic firm wanting to expand will operate steady. In Japan, in recent years, the relationship between China and Japan is unfriendly and Japanese government took a tough stance against China, which is not a good sign for domestic firm to expand.

Economic situation

Japan is capitalism. According relevant report, Japanese economic situation is not optimistic. There is serious inflation in Japan. 90 years ago, Japan accounted for 15.9

percent of the total economy of the whole world, however in 2011, dropped to a little more than 8% and the trend yet continues, which display, Japan’s economic status has been not as better as previous. The other potential risk of the Japanese economic situation is unemployment rate increase gradually, which is bad for domestic firm to expand. However, Japan also has many advantage conduced to expanding, such as advanced technology, citizen with good education, etc. It is challenge and opportunity for domestic firm.

Belief/value systems

There is a famous saying from Worthington & Britton”a complex set of values, norms, beliefs, attitudes, customs, systems and artefacts which are handed down from generation to generation through the process of socialisation and which influence how individuals see the world and how they behave in it”. Japanese moral system also is relativism, it is for a specific relationship rather than emphasizing abstract principles. There is not general ethical standard but the most complex cumbersome rules of behavior in world in Japan. Japanese never judge person from an absolute value system. The core of Japanese behavior is relative, which ask domestic firm for operate with flexibility because in Japanese society, right and wrong, good and bad, beauty and ugly are possible to transform.

Language

Language is a essential factor about expanding. When in a business meeting, use inappropriate words will make meetings halt sometimes. In Japan, there are many ways to call a person, but in different ways, the inner meaning is different. Translator

must use right words carefully.

Q2

Describe an approach that could be adopted by an international business operating in Japan to reduce commercial risk from political issues

There are 3 form about political issues, discriminatory government intervention, expropriation risk, violence risk. Agriculture does not occupy an important position in Japanese economy. Japanese agricultural labor investment is relatively high, while the grain self-sufficiency rate is relatively low. So domestic firm operated agriculture expanding into Japan is not a good idea. Iron and steel industry is Japan's key investment sector, the pace of development is faster than the major steel producing countries in Europe and America which is adverse for domestic iron and steel firm to expand. In precision instruments, Japan has dominate status. It is challenge and opportunity. If domestic firm produce more precise product, the firm will get vast advantage for expanding.

To establish political risk assessment and early warning mechanism is method to reduce commercial risk. Company can take a variety of methods to predict the political risks from the target country, such as systematic research, mathematical model analysis. However, Chinese authorities notification system is still very

backward and the concentration of political risk is low. In this consequence, domestic firm can ask for world-famous consulting company such as RAND early, and in future, the relevant departments of China should actively integrate all aspects of the data, to establish a relatively authoritative and comprehensive risk assessment database, so that domestic firm reduce expenditures about seeking third-party evaluation, and promote the healthy development of overseas investment.

Q3

Describe an approach that could be adopted by an international business operating in Japan to reduce commercial risk from culture issues

Culture issue includes language, education, social structure, religion etc. Religion - shared beliefs and rituals that are concerned with the realm of the sacred. Most Japanese believe in both Shinto and Buddhism, some still believe in a variety of religions and among believers 96% believe in Shinto，76% of Buddhism，Christianity accounted for 1.4%, the other 12%. Formal education is the medium through which individuals learn many of the language, conceptual, and mathematical skills that are indispensable in a modern society, for exam ple Japan’s postwar success can be linked to its excellent education system. Japanese attach great importance to courtesy, a typical Japanese is a introverted person with high self-esteem. Punctuality and physical appearance are very important for business negotiation. They pay great attention to personal relationship, willing to do business with acquaintances, the Japanese like red, white, blue, orange, yellow and other colors, consider green, dark gray, purple and black negative.

The most common approach to reduce commercial risk from cultural issues in enterprise is intercultural learning. It also is effective method to avoid cultural risk for company expanding into overseas. Intercultural learning is an area of research, study and application of knowledge about different cultures, their differences and similarities. The intercultural learning includes, language training, the knowledge and understanding of Japanese culture, adapting Japanese culture, the ability to deal with conflict or sensitive question and understanding the different between their management condition. Intercultural learning can not only avoid commercial risk from cultural issues, but also improving operational efficiency, promoting communication, enhancing the ability to survive abroad of enterprise.