PROJECT MANAGEMENT REPORT PEST ANALYSIS OF JAPAN

INTRODUCTION: Japan is a major economic power. Japan has the world's third-largest economy by nominal GDP and fourth-largest economy by purchasing power parity. It is also the world's fourth-largest exporter and fourth-largest importer. Upper estimates suggest that 8496 percent of the Japanese population subscribe to Buddhism or Shinto, including a large number of followers of a syncretism of both religions. However, these estimates are based on people affiliated with a temple, rather than the number of true believers. More than 99 percent of the

population speaks Japanese as their first language. Japan is known for its Culture which includes Arts, Music, Literature, Cuisine and Sports.

PEST Analysis of Japan: Political analysis: Political System

(Constitutional Monarchy (Limited Monarchy) is a form of government in which a monarch acts as head of state within the parameters of a constitution .). As a ceremonial figurehead, he is defines by the constitution as the symbol of the state and of the unity of the people. Power is held by the prime Minister of Japan while sovereignty is vested in the Japanese people. . Akihito is the current Emperor of Japan: Naruhito, Crown Prince of Japan, stands as next in line to the throne: Naoto Kan is the 94th Prime Minister of Japan, appointed June 8, 2010 and resigned August 26, 2011; Yoshiniko Noda is the 95th Prime Minister of Japan, appointed September 2, 2011, Japans 6th Prime Minister in 5 years. Political Parties

The Liberal Democratic Party (LDP) is the only stable party of the last 4 decades. It has been in power since its foundation in 1958, keeping an undisrupted majority in parliament. At the moment, the second most popular party is the newly founded Democratic Party of Japan (DPJ). It defeated the LDP by a single seat at the last Upper House election in 2004.
The Diet

Japan is a parliamentary kingdom governed by a Prime Minister and his cabinet. The parliament is called the Diet and is composed of the upper House of Councilors and the lower House of Representatives. The House of Representatives can be dissolved anytime by the Prime Minister. The lower house holds most of the

decision power. The party which achieves a majority in the lower house can nominate the Prime Minister (usually the party president).

Judicial System

The Supreme Court (Saiko Saibansho) and a number of inferior courts are vested with the judicial power. The Supreme Court is the highest court in the land. The Supreme Court has the rule making power and is considered court of last resort that determines the constitutionality of any law, order and regulation. It is made up of 14 judges who are designated by the Cabinet and a Chief Judge. . All judges are granted complete independence in decision making. . Japanese courts do not use a jury system, and there are no administrative courts or claims courts. Court decisions are made in accordance with the legal statues. Only Supreme Court decisions have any direct effect on later interpretation of the law. Justice Tenure

Every 10 years, a justice's tenure has to be confirmed by referendum. In practice, the justices are almost always reselected and are allowed to serve until the age of 70. There are three major labor laws, namely:

The Labor Standards Law (LSL) {The LSL regulates firstly working conditions and secondly the workplace safety and hygiene.}

The Trade Union Law (TUL) {The TUL guarantees the worker's right to organize and to bargain collectively}

The Labor Relations Adjustment Law (LRAL) {labor management adjustments and means of dispute settlement are specified in the LRAL.}

Election System

The legal age for voting is 20, while the minimum age to stand for election is 25 for the lower house and 30 for the upper house. There are 242 Councillors elected for 6 years, 480 Representatives elected for 4 years and 47 Administrative Prefectures elected for 4 years. Japanese laws prohibit candidates to make written propaganda during the electoral periods - which means that also Internet campaigns are not allowed. As a result, politicians have to resort to shouting in loudspeakers in little vans while driving around their electoral constituencies. Government Stability

Japan receives a score of +0.94 for the factor "Political Stability and Absence of Violence/ Terrorism" in the Kaufmann, Kraay, and Masatruzzi's Governance Indicators for the year 2008, compiled for the World Bank. The governance estimates are normally distributed with a mean of zero, and a higher score signifies a less violent and politically more stable society. There are over one million civil servants in the Japanese government and the economic ministries (administration staff). Japan is arguably controlled more by the country's strong central bureaucracy than it is by its elected officials. There are thousands of rules and regulations overseen by the bureaucracy that businesses, government agencies and ordinary citizens have to abide by. Companies need licenses and people need to pass tests for doing all kinds of things. Freedom of Press/Media, Rule of Law, Bureaucracy, and Corruption

Press freedom is constitutionally guaranteed and generally respected in practice. The independent court system has particularly emerges in the recent years as a bulwark against political pressure on journalist. Japan has a vigorous and free media and boasts the second highest daily newspaper circulation per capita in the world (after (Norway). Many national dailies have circulations topping one million

and often produce afternoon and evening editions as well. More than half of the national newspaper market share is controlled by the big three: the Yomiuri Shimbun, the Asahi Shimbun, and the Mainichi Shimbun.

Economic Analysis In the decades following World War II, Japan implemented stringent tariffs and policies to encourage the people to save their income. With more money in banks, loans and credit became easier to obtain, and with Japan running large trade surpluses, the yen appreciated against foreign currencies. This allowed local companies to invest in capital resources much more easily than their competitors overseas, which reduced the price of Japanese-made goods and widened the trade surplus further. And, with the yen appreciating, financial assets became very profitable. With Japan's economy driven by its high rates of reinvestment, this crash hit particularly hard. Investments were increasingly directed out of the country, and Japanese manufacturing firms lost some degree of their technological edge. As Japanese products became less competitive overseas, some people argue that the low consumption rate began to bear on the economy. Japan is the 3rd biggest economy in the world, and the gaming market in Japan is extremely biggest due to its popularity. However, due to the recent earthquake, Japans economy has temporarily taken a turn for the worse. Also, expenditure on entertainment has decreased while expenditure on essential supplies such as food has increased. It may be a while before Japan returns to its original state and has a demand for video games again.

Closer economic analysis of Japan reveals that there are certain significant areas such as social services and education that have not been accorded much importance when allotting financial aid in times of monetary crisis.

Japan economic analysis reveals that this country is in throes of recession as a result of decrease of its exports. When global financial crisis broke out in 2008 in United States of America because of downturn of subprime mortgage market Japan had not been affected as such because of its comparative lack of exposure but afterwards global financial crunch caught up with it when exports scenario became well nigh redundant.
Deflation from the 1990s to present

Deflation in Japan started in the early 1990s. On March 19, 2001, the Bank of Japan and the Japanese government tried to eliminate deflation in the economy by reducing interest rates (part of their 'quantitative easing' policy). Despite having interest rates down near zero for a long period of time, this strategy did not succeed. Once the near-zero interest rates failed to stop deflation, some economists, such as Paul Krugman, and some Japanese politicians spoke of deliberately causing (or at least creating the fear of) inflation. In July 2006, the zero-rate policy was ended. In 2008, the Japanese Central Bank still has the lowest interest rates in the economy. Systemic reasons for deflation in Japan can be said to include:

Fallen asset prices. There was a large price bubble in both equities and real estate in Japan in the 1980s (peaking in late 1989).

Insolvent companies: Banks lent to companies and individuals that invested in real estate. When real estate values dropped, many loans went unpaid. The banks could try to collect on the collateral (land), but due to reduced real estate values, this would not pay off the loan.

Fear of insolvent banks: Japanese people are afraid that banks will collapse so they prefer to buy gold or (United States or Japanese) Treasury bonds instead of saving their money in a bank account. People also save by owning real estate.

The Japanese are also hard workers, a fact that has contributed to economic growth. On this they surpass even Americans are traditionally assumed to be the worlds most industrious nations. Sun spent after the 1987 report by the Japanese Ministry of Labour, an average worker in a Japanese work 2168 hours per year at work than the U.S. average of 1949 hours over. The willingness to work hard and extra hours has helped set the high performance. The Economist has suggested that improvements to bankruptcy law, land transfer law, and tax laws will aid Japan's economy. In October 2009 the Japanese government announced plans to increase tobacco and green taxes while reducing rates for small and medium sized companies.

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self sufficient in rice, Japan imports

about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2010 stood as the third-largest economy in the world after China, which surpassed Japan in 2001. The exact figures are shown below which highlight the purchasing power of the Japanese people over the 4 years time period: GDP: Purchasing Power Parity $ 4.395 trillion (2011) $ 4.310 trillion (2010 ) $ 4.146 trillion (2009) $ 4.424 trillion (2008 )

The Japanese financial sector was not heavily exposed to sub-prime mortgages or their derivative instruments and weathered the initial effect of the recent global credit crunch, but a sharp downturn in business investment and global demand for Japans exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010. Prime Minister Kans government has proposed opening the agriculture and services sectors to greater foreign competition and boosting exports through free trade agreements, but debate continues on restructuring the economy and funding new stimulus programs in the face of a tight fiscal situation.

Japan's huge government debt, which exceeds 200% of GDP, persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are major long-term challenges for the economy.

Major Challenges faced by the Japanese Government: A 9.0 magnitude earthquake and an ensuing tsunami devastated the northeast coast of Honshu Island on 11 March 2011, washing away buildings and infrastructure as much as 6 miles inland, killing thousands, severely damaging several nuclear power plants, displacing and leaving homeless more than 320,000 people, and leaving a million household without running water. Radiation leaks at the Fukushima Daiichai nuclear plant prompted mass evacuation and the declaration of a no-fly zone- initially for people and planes within 12.5 miles of the plant but later expanded to 19 miles. Radioactive iodine-131 has been found as far as 100 miles from the plant in samples of water, milk, fish, beef, and certain vegetables, at levels that make these foods unfit for consumption and create uncertainly regarding possible long-term contamination of the area. Energy-cutting efforts by electric companies and train lines slowed the pace of business throughout Honshu Island, and the stock market gyrated, dropping as much as 10% in a single day. In order to stabilize financial markets and retard appreciation of the yen, the Bank of Japan injected more than $325 billion in yen into the economy. Estimates of the direct costs of the damage -rebuilding homes and factories range from $235 billion to $310 billion. However Some economic forecasters, who previously had anticipated slower growth for Japan in 2011, now believe GDP may decline as much as 1% for the year. The majors sectors that are operational in Japan are as follows Agriculture Industry

 Services Labor force The contribution of all the sectors differs in various percentages. The estimates are as follows: Composition by sector (2010) Agriculture: 1.4% Industry: Services: Labor force 24.9% 73.8% $ 62.97 million (2010)

Here it is noted that the majors contribution is done by the services sector of japan which Is 73.8% and the lowest composition is for the agriculture, that is 1.4%.

Official Exchange Rate $ 5.459 trillion (2010)

Real Growth Rate -0.5% (2011) 3.9% (2010 ) -6.3% (2009) -1.2% (2008) Per Capita $ 34,300 (2011 ) $ 34,000 (2010) $ 32,600 (2009.)

$ 34,800 (2008 ) Agriculture: 3.9% (2010 ) -rice, sugar beets, vegetables, fruit, pork, poultry, dairy products, eggs, fish Industry: 26.2% (2010) Japan is considered as among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods Services: 68.8% (2010) 68.8 % of the people are employed in service sectors jobs which contribute to the GDP of japan . Unemployment Rate 4.7% (April 2011) 5.0 % (2009 & 2010.) Initially it can be seen that in year 2009 and 2010 the unemployment rates were about 5 % but with the passage of time the economy improved and there was a rise in GDP of the country as well thereby reducing the unemployment rate in April 2011 creating lot of jobs for the public.

Budget Revenues: $ 1.776 trillion (2010)

Expenditures: $ 2.221 trillion (2010) Form the figures it is clear that their revenues are less than their expenditures. They need to lower their expenditure so as to increase their revenues.

Some of the other estimates that indicate the current situation of the economy of Japan are as follows: Inflation Rate 0.3% (April 2011) -0.7% (2010) 1.3% (2009) Foreign Exchange Reserves $ 1.154 trillion (April 2011.) $ 1.063 trillion (31 December 2010 .) $ 1.024 trillion (31 December 2009 .)

Stock of Direct Foreign Investment At Home: $ 199.4 billion (31 December 2010) $ 199.9 billion (31 December 2009)

Abroad $ 795.7 billion (31 December 2010 ) $ 738.5 billion (31 December 2009 .)

Exchange Rate (Yen (JPY) per US Dollar) 87.78 (2010) 93.57 (2009)

Also Japan has a high income tax rate of 40%, but its corporate tax rate of 30% is described as "moderate." The income tax rate can rise to nearly 50% when local taxes are considered. Local corporate taxes added to the national rate can yield a total rate of about 41%. Japan also imposes a value-added tax, tax on interest, and estate tax. Social (or Socio-Cultural) Analysis In Japan Sociological structure depends upon following:-: Cultural aspects, health consciousness, population growth rate, age distribution, Organizational culture, attitudes to work, management style, staff attitudes Education, occupations, earning capacity, living standards Ethical issues, diversity, immigration/emigration, ethnic/religious factors Media views, law changes affecting social factors, trends, advertisements, publicity Demographics: age, gender, race, family size People and Society, Social Structure in Japan A largely homogeneous society, Japan does not exhibit the deep ethnic, religious, and class divisions that characterize many countries. The gaps between rich and poor are not as glaring in Japan as they are in many countries, and a remarkable 90 percent or more of Japanese people consider themselves middle class

 However, some significant social differences do exist in Japan, as evidenced by the discrimination in employment, education, and marriage faced by the countrys Korean minority and by its brakeman. Burakumin means hamlet people, a name that refers to the segregated villages these people lived in during Japans feudal era. Burakumin are identical from Japanese racially or culturally, and today they generally interact with the rest of the population. Despite the shift toward individual empowerment, Japanese society remains significantly group-oriented compared to societies in the West. Japanese children learn group awareness at an early age within the family, the basic group of society. Membership in groups expands with age to include the individuals class in school, neighborhood, extra curricular clubs during senior high school and college, and, upon entering adulthood, the workplace. All along, the individual is taught to be dedicated to the group, Most groups are structured hierarchically. Individual members have a designated rank within the group and responsibilities based on their position. Seniority has traditionally been the main qualification for higher rank, and socialization of young people in Japan emphasizes respect and deference to ones seniors.

Demographics

The demographic features of the population of Japan include population density, ethnicity and education level, health of the population, economic status, religious affiliations and other aspects of the population. The estimates are as follows:

Population 126,475,664 (July 2011 )

Age Structure (2011 ) 0-14 years: 15-64 years: 13.1% (Male- 8,521,571/ Female- 8,076,173) 64% (Male- 40,815,840/ Female- 40,128,235)

65 years and over: 22.9% (Male- 12,275,829/ Female- 16,658,016)

Medium Age (2011 est.) Total: Male: Female: 44.8 years 43.2 years 46.7 years

Population Growth Rate Birth Rate Death Rate Total Fertility Rate

-0.278% (2011 )

7.31 births/1000 population (2011 est.) 10.09 deaths/1000 population (July 2011 est.) 1.21 children born/woman (2011 est.)

Sex Ratio (2011) At birth: Under 15 years: 15-64 years: 65 and over years: 1.056 Male (s)/Female 1.06 Male (s)/Female 1.02 Male (s)/Female 0.74 Male (s)/Female

Total Population: 0.95 Male (s)/Female

Infant Mortality Rate (2011 ) Total Male: Female: 2.78 deaths/1000 live births 2.98 deaths/1000 live births 2.58 deaths/1000 live births

Life Expectancy at birth (2011 ) Total Population 82.25 years Male: Female: 78.96 years 85.72 years

Urbanization Urban Population: 67% of the total population (2010 est.) Rate of Urbanization: 0.2% annual rate of change (2010-15 est.) Net Migration Rate 0 migrants/1000 population (2011 est.)

Major Cities Population Tokyo (Capital)- 35.327 million Osaka- KobeNagoyaFukuokaSapporo11.286 million 2.189 million 1.368 million 1.848 million

Literacy Rate Definition: age 15 and over can read and write

Total Population: 99% Male: Female: 99% 99%

-3.5% of GDP is spent on education Japanese language

The Japanese language is spoken mainly in Japan but also in some Japanese emigrant communities around the world. Japanese is written with a combination of three scripts: hiragana, derived from the Chinese cursive script, katakana, derived as a shorthand from Chinese characters, and kanji, imported from China. The Latin alphabet, rmaji, is also often used in modern Japanese, especially for company names and logos, advertising, and when inputting Japanese into a computer. The Hindu-Arabic numerals are generally used for numbers, but traditional SinoJapanese numerals are also common. Sports

Sumo or Sumo wrestling is a traditional Japanese contact sport. Sumo still remains popular in Japan today where the top sumo wrestlers are well paid. Baseball, football, and other popular western Sports were imported to Japan in the Meiji period. These sports are commonly practiced in schools along with traditional martial arts. Baseball is the most popular sport in Japan. Football is becoming more popular after J league (Japan professional soccer league) was established in 1991. In addition, there are many semi-professional organizations which are sponsored by private companies. For example, volleyball, basketball, rugby union, table tennis, and so on. The motorsport of drifting was also invented in Japan. Cuisine

The primary staple is Japanese rice. In the early modern era ingredients such as red meats that had previously not been widely used in Japan were introduced. Japanese cuisine is known for its emphasis on seasonality of food, quality of ingredients and presentation. Japanese cuisine offers a vast array of regional specialties that use traditional recipes and local ingredients. Japanese Food favorite foods are Rice foods, curries, seafood, green tea and sweets such as dried octopus, squid and soured plums. Sushi, Onigiri (Rice Ball), Miso Soup, Beef Sukiyaki and Chicken Teriyaki. The Japanese eat three main meals a day. The main ingredient in all three, however, is rice (or sometimes noodles). Miso soup and pickles are always served as well. Meals eaten early in the day tend to be the simplest. A typical breakfast consit of rice, miso soup, and a side dish, such as an egg or grilled fish. The Japanese tea ceremony (cha-no-yu, chado, or sado) is a traditional ritual influenced by Zen Buddhism in which powdered green tea, or matcha, is ceremonially prepared by a skilled practitioner and served to a small group of guests in a tranquil setting.

Festival and Holidays

Japanese festivals are traditional occasions. Some festivals have their roots in Chinese festival but have undergone dramatic changes as they mixed with local customs, Festivals are often based around one or two main events, with food stalls, entertainment, and carnival games to keep people entertained. Some are based around temples or shrines, others hanabi (Fireworks), and still others around contest where participants sport loin clothes. The most important holiday in Japan is the New Year (Shogatsu). Special holiday foods, called osechi, are prepared in beautifully decorated stackable boxes called jubako. New Year foods are also eaten because they are believed to represent good furtune or long life. At New Years, children are especially fond of hot rice cakes dipped in sweet soybean powder. Art

Japanese art covers a wide range of art styles and media, including ancient pottery, sculpture in wood and bronze, ink painting on silk and paper and more recently manga, cartoon, along with a myriad of other types of works of art. It also has a

long history, ranging from the beginnings of human habitation in Japan, sometime in the 10th millennium BC, to the present. Painting has been an art in Japan for a very long time: the brush is a traditional writing tool, and the extension of that to its use as an artist's tool was probably natural. Dresses

The kimono is a Japanese traditional garment worn by women, men and children. Japanese word kimono means "something one wears". Kimonos are T-shaped, straight-lined robes worn so that the hem falls to the ankle, with attached collars and long, wide sleeves. Kimono are wrapped around the body, always with the left side over the right (except when dressing the dead for burial) and secured by a sash called an obi, which is tied at the back. Kimonos are generally worn with traditional footwear (especially zri or geta) and split-toe socks (tabi). Geta are sandals mounted on wooden blocks held to the foot by a piece of fabric that slides between the toes. Geta are worn both by men and women with the kimono. Tabi, an ankle high sock, is often worn with the kimono. Tabi are designed to be worn with geta a type of thonged footwear. Happi is another type of traditional clothing, but it is not famous worldwide like the kimono. A happi (or happy coat) is a straight sleeved coat that is typically imprinted with the family crest, and was a common coat for firefighters to wear. Music

The music of Japan includes a wide array of performers in distinct styles both traditional and modern. The word for music in Japanese is ongaku, combining the kanji (on sound) with the kanji (gaku fun, comfort). Local music often appears karaoke venues, which is on lease from the record labels. Traditional Japanese music has no specific beat, and is calm.

Technological Analysis Japan is well known for its automotive and electronics industries throughout the world, and Japanese electronic products account for a large share in the world

market, compared to a majority of other countries. Japan is one of the leading nations in the fields of scientific research, technology, machinery and medical research with the worlds third largest budget for research and development at $ 130 billion USD, and over 677,731 researchers. Japan has received the most science Nobel Prizes in Asia. Japan has large international corporate conglomerates such as Fuji (which developed the nation's first electronic computer, FUJIC, in 1956) and Sony. Sony, Panasonic, Canon, Fujitsu, Hitachi, Sharp, NEC, Epson and Toshiba are among the most well-known electronics companies in the world. Toyota, Honda, Nissan, Mazda, Mitsubishi, Nintendo, Sony and Subaru are also very well known companies in the world. Some of Japan's more important technological contributions are found in the fields, electronics, machinery, robotics, optics, chemicals, semiconductors and metals. In particular, the introduction of advanced research and advanced technologies from Japan one of the leading manufacturers of Hi-tech products and consumer products including all kinds of electronic devices and electronic components such as semiconductors. Recently Japan has been a pioneer in the production of digital products and todays best sellers like Flat-panel TVs, cell phones, digital cameras and DVDs.

Japan leads the world in robotics, possessing more than half (402,200 of 742,500) of the world's industrial robots used for manufacturing. It also produced QRIO, ASIMO, and Aibo. Japan is also home to six of the world's fifteen largest automobile manufacturers and seven of the world's twenty largest semiconductor sales leaders. Japanese goods, which are based on advanced technologies to the nation on high added value included in their products and to sell goods in a variety of markets, despite

high labor costs become another reason why Japan is one of the leading companies in the industrialized world was the traditionally high savings rate in the nation.

Japan is also considered to have one of the most advanced trains, notably the Shinkansen and Maglev trains. Japan has also made headway into aerospace research and space exploration. The Japan Aerospace Exploration Agency (JAXA) conducts space and planetary research, aviation research, and development of rockets and satellites. It has developed a series of rockets, the latest and the most powerful of which is H-IIB. H-IIA/B rockets which have the capability of carrying 8-ton payload to the GTO at maximum are now managed by the private-own company Mitsubishi Heavy Industry. It also built the Japanese Experiment Module, which was launched and added to the International Space Station during Space Shuttle assembly flights in 2007 and 2008. Since 1973, nuclear energy has been a national strategic priority in Japan, as the nation is heavily dependent on imported fuel, with fuel imports accounting for 61% of energy production. In 2008, after the opening of 7 brand new nuclear reactors in Japan (3 on Honsho, and 1 each on Hokkaido, Shikoku, and Tanegashima) Japan became the third largest nuclear power user in the world with 55 nuclear reactors. These provide 34.5% of Japans electricity. Americans invented the Internet, but the Japanese are running away with it. Broadband service in Japan is eight to 30 times as fast as in the United States-- and considerably cheaper. Japan has the world's fastest Internet connections, delivering more data at a lower cost than anywhere else. By September 2007, Japan had 27.7 million broadband lines in place, making the third largest broadband country in the world after the USA and China (China surpassed Japan earlier in 2004). Much of the success of broadband in Japan is owed to the stunning growth in 2003 of ADSL as a broadband technology. Internet Usage and Population Statistics Year Source Users Population % Population

2000 2005 2007 2008 2009 2010

47,080,000 78,050,000 87,540,000 94,000,000 95,979,000 99,143,700

126,925,843 128,137,485 128,389,000 127,288,419 127,078,679 126,804,433

37.1% 60.9% 68.0% 73.8% 73.8% 78.2%

Japans telecommunications sector is one of the most active markets in the world. This market has witnessed the growth of VoIP and triple play services continued 3G competitions among mobile operators, noteworthy uptake of FttH and strides in digital and mobile broadcasting. Japan is an early adopter of triple play models, which provide TV, broadband Internet and voice telephony as packaged services from a single provider. Into 2005, the growing popularity of IP telephony in particular is dealing a blow to fixed-line giant NTT. The fixed-line network in Japan is undergoing a major transformation as the traditional telephony voice services move into decline. The copper cable of the fixed network, nevertheless, remains significant in Japan as it must support the millions of ADSL broadband subscribers. E-commerce, a subset of the Internet, has considerably influenced Japan's business outlook and marketing. The potential for E-commerce in Japan is believed to be huge, particularly with respect to monetary savings yielded on the cost of conducting and initiating business.

Online Shoppers as a % of Internet Population

Global China 33%

86%

US UK Japan South Korea

94% 97% 97% 99%

Most research and development is private, although government support to universities and laboratories aid industry greatly. In 1986 private industry provided 76 percent of the funding for research and development, which was especially in the late 1980s in electrical machinery, precision instrument, chemicals, and transportation equipment. However in 1987 according to data from the Bank of Japan internationally comparative statistics, 1989, the Japanese savings rate of 15.1% compared to the U.S. by only 6.6%. Private savings creates a flow of funds to finance start-ups, the Japanese capitalists were able to transform business projects. Most analysts would agree with private savings, the banks and other financial institutions to lend again expanding companies, are extremely important for economic growth. Imports of japan: Imports $ 794.7 billion (2011 est.) $ 639.1 billion (2010 est.) $ 501.6 billion (2009 est.)

Main Import Partners (2011) China USA Australia Saudi Arabia 22.10% 9.90% 6.50% 5.20%

United Arab Emirates South Korea Indonesia Exports of japan: Exports $ 800.8 billion (2011) $ 730.1 billion (2010) $ 545.3 billion (2009 ) -

4.20% 4.10% 4.10%

Main Export Partners (2010 est.) China USA 19.48% 15.70% 8.10% 5.50% 4.40%

South Korea Hongkong Taiwan

Joint ventures of japan Since the 1960s, joint ventures between firms of two different nationalities have increased dramatically, particularly between horizontally-related firms (Hergert and Morris, 1988; Harrigan, 1988). American and European multinational enterprises (MNEs) have begun to link up with Japanese firms for joint ventures in the non-Japanese partner's home country, a significant departure from the previous trend, in which most transnational cooperative ventures with a

Japanese partner were based in Japan. Japanese firms are now seeking information about circumvention of protectionist measures, knowledge of the local culture, and the access to distribution channels Each of these businessmen is commenting on aspects of a trend that is reshaping Americas trade relations with Japan and creating a new context for international competition. Very simply, this is the situation: to avert rising U.S. protectionist sentiment, Japanese companies are setting up plants in the United States, either as joint ventures or on their own; to obtain high-quality, low-cost products and components, U.S. companies are making joint venture agreements with Japanese companies. At the same time, U.S. companies are licensing their new inventions to the Japanese. (The Exhibit lists recent U.S.-Japanese coalitions in high-technology industries.)

On the surface, the arrangements seem fair and well balanced, indicative of an evolving international economic equilibrium. A closer examination, however, shows these deals for what they really arepart of a continuing, implicit Japanese strategy to keep the higher paying, higher value-added jobs in Japan and to gain the project engineering and production process skills that underlie competitive success.

In contrast, the U.S. strategy appears dangerously shortsighted. In exchange for a few lower skilled, lower paying jobs and easy access to our competitors highquality, low-cost products, we are apparently prepared to sacrifice our competitiveness in a host of industriesautos, machine tools, consumer electronics, and semiconductors today, and others in the future.

Many research studies have been done to explain the reasons for the tensions and failures observed in joint ventures between Japanese and Western multinational enterprises. The majors reason for this are: The incompatibility of societal values: In contrast to the recent development of economics-based thinking about Western-Japanese joint venture failure, the difference between Japanese and Western cultures has become a popular catch-all explanation for such difficulties. Japanese simultaneously feel superior to other races and insecure about their future. Japan's lack of natural resources and usable land mass and its inability to impose its will militarily during World War II seem to have had a deep psychological effect, and have created a feeling that security for the future will be found only through economic power. Franchises in Japan: In Japan the most typical franchisors are organized in the form of a joint stock company which is governed by the Companies Act (Act No. 86, 2005) and administered by the Ministry of Justice. We have observed a general trend of franchisees becoming more and more active in protecting their status. One such example is the formation of a labor union called Kombini Kameiten Unionin 4 August 2009, which was admitted to join one of the local branches of the Japanese Trade Union Confederation in 10 September 2010. The union primarily consists of franchise is of a major convenience store and its aim is to improve working conditions for workers in the convenience store industry and promote such workers political, social and economic status. Among other activities, the union requested the major convenience stores franchisor to conduct collective bargaining pursuant to the Labor Union Act in Japan. The franchisor refused to conduct collective bargaining. The union alleged that this was an unfairlabour

practice and applied for relief to the local Committee on Labor Affairs. Unions are arguing that as convenience stores franchisees have a status similar to workers under labor law, the union should be recognised as a labour union under the Labor Union Act. The logic of this argument is questionable, considering the independent nature of franchisees. However, it can be said that franchisors should be more careful to determine the terms and conditions of franchise agreements in order to avoid the risk of franchisees being considered employees of the franchisor. Conclusion The conclusion is that Japan is one of the growing major super powers. Its has a high literacy rate and it is continuously accelerating in the fields of education and technology. The economic growth indicators also indicate a sound growth and there are numbers of opportunities and investments that can be made which will be profitable in future.