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Environmental assessment template Group members: Phạm Minh Thu Nguyễn Bảo Thi Nguyễn Thị Thùy Trang Lương Thị Ái Phương Hoàng Ngọc Phụng 1 = Least favourable, 10 = Most favourable 1 = Highest risk, 10 = Lowest risk Vietnam
Japan
Political Environment System of government Stability of government Level of corruption Foreign relations State ownership of companies Terrorism and public security
5 3 3 9 4 8
8 7 8 8 8 9
Legal/Regulatory environment Independence of judiciary/due process Contract enforceability Tax rates and lows Property rights protection Environmental protection Tariffs Other trade restrictions Foreign investment policies
4 5 2 7 7 2 1 6
3 2 4 4 2 3 1 7
Economic environment GDP growth projections GDP per capita Demographics Government budgetary policy Inflation rates Currency stability Strength of labour unions
7 1 8 5 7 8 5
2 9 3 8 2 7 8
Technological environment Infrastructure Telecommunications and internet Availability of required skills Intellectual property protection Technology transfer requirement/barriers Adherence to international standards
6 7 6 6 7 7
9 8 7 9 8
Total scores
8
To: Ms. Thao, CEO of Prince Coffee From: Anna, IBD Manager of Prince Coffee Date: 1/10/2019 Re: Evaluation and Findings for Japanese market This memo includes some findings and affects when our company invest in Japan 1.Foreign relations: First is foreign relations. Though Japan and China maintain trading and investment relationship, since 2014, relations is strained by disagreements over the sovereignty of a group of uninhabited islands in the East China Sea. Besides, in 2017, the Defence White Paper had exposed that North Korea’s nuclear missile is a potential threat to Japan. These unrest in politics could block the flow of trading activities: The flow of export, import, local worker/employee sources or advertising activities will be restricted and the manufacturers can be destroyed. These leads to lack of human resources, infrastructure and loss of revenue. 2.Tax rates and lows: Tax rates and lows plays an important roles when we consider investing in japan. Because the fact that business will get higher profits when they can have advantage of low cost. therefore, when taxes is higher, price of good is higher and customer will buy less, leading to decrease in sale production and profits .at present ,japan have policy of raising consumption tax beyond 10 percent. When this happened, it would indirectly cause an impact on export goods' revenue of other country which exports their products to japan. 3.GDP per capita: Last Previous Min Max Unit Frequency Range 39,313.457 38,368.161 331.315 48,643.307 USD Yearly 19572018 2018 2017 1957 2012 GDP affects the needs of families, businesses and the State. A country with increased GDP will lead to an increase in demand, the number of products and services, an increase in categories, quality, tastes ... leading to increased market size. This in turn requires businesses to respond from time to time, meaning it affects all aspects of governance such as planning, leadership, organization, control and decision making. not only about business strategies and policies, but also on specific activities such as what goods and services to produce, for whom, how much and when. 4.Intellectual property protection: Japan is well known as a market that respects Intellectual Property. If the protection of the inventor's rights is not taken seriously, counterfeit products will float in the market. One of the considerations companies must face is whether they have sufficient protection of their brand name and logo before attempting to enter overseas markets and launch their product or service there. If protection is surrendered, then the enthusiasm of the company, of the inventor, of inventing the product will be compromised, and like waiting for a society to develop is impossible.
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