Japan Overview
...political situation is Japan is strong due to the great work from Prime Minister Junichiro Koizumi over the last few years. He has improved relationships with other countries in order to improve the well being of Japan, and one of those countries was the United States. The aging population is an issue as it will have an effect on the economic and social bodies, but the government has a plan on counteracting this shift through immigration. I feel the political risk in Japan is minimal, and if there were negative political events, the financial losses would be minimal.
Japan's economy is the second largest in the world. Japan has many industrial leadership and technicians, well-educated work force, high savings and investment rates, and positive goals towards industrial development and foreign trade. Their productivity is on the rise, which is positive as their outlasting the current economic cyclical factor. Japan has proven its economy can handle globalization through the supply of critical technology to the rest of the world. Corporate earnings are very positive due to corporation getting increased price. The GDP has grown for five consecutive quarters, with expectations in 2006 to rise 2.1% to over $4.7 trillion. The unemployment rate is at an eight year low at 4%, due to stronger exports and consumer spending. Foreign investment has improved in Japan through increased real estate prices, moderate lower labor costs, 127 million potential consumers, high technological and economical standards, strong purchasing power, and government tax benefits.
Japan's culture is quite unique, as they can come across as ethnocentric. The high context culture is difficult for Americans to deal with, but this often produces a high quality work ethic. Japan's education is very high-quality, producing a 95% literacy rate and a 95% graduation rate. One benefit for...
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