7-1 Project Submission

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INT 220 Business Brief Template Course Project Section One: Drivers for Global Entry Country Selection Japan Purpose of Global Expansion No matter its size, a company has to grow internationally. Expansion increases revenue for the company since it will have a broader market to offer its items. Furthermore, the company's expansion can allow it to surpass its competitors. Business Impacts of Global Business The company's global market expansion will increase its clientele, which might lead to better marketing prospects. By expanding into international markets, businesses may find it easier to build unique and diverse workforces. These workforces are essential in today's cutthroat economy. Utilizing the resources and money that are available to the company also helps it. Societal Impacts of Global Business International businesses are greatly impacted by societal, cultural, and business factors. The company is expanding from the United States into Japan, thus it's imperative to understand Japanese business procedures. Every country has its own set of beliefs, customs, and cultural values. Even the most fundamental aspects of international markets, such as greetings, organizational structure, and marketing strategies, must be understood. Cultural Considerations for Global Business Businesses must follow the regulations imposed by society to function and carry out their processes. Therefore, it's crucial to find out how Japanese consumers feel about mobile phone covers before entering that market. Section Two: Market Profile Cultural Profile Understanding Japanese culture is crucial if you want to expand into that market. Although the English language proficiency rate in Japan is just around 30%, it is believed that learning the language might improve one's status in the nation. We will have to prepare for this and ensure that we can have a translator on hand to help with communication throughout our meetings. We also need to ensure that we are aware of and prepared for any other cultural differences that might surface during our discussions. For instance, in Japanese culture, it is customary to prepare ahead and meticulously analyze every step when preparing for anything longer than a quarter or a year. Category United States Japan Commonly Spoken Languages English Japanese Commonly Practiced Religions Christianity Shinto and Buddhism Power Distance Index (PDI) 40 54

Category United States Japan Individualism Versus Collectivism (IDV) 90 46 Masculinity Versus Femininity (MAS) 62 95 Uncertainty Avoidance Index (UAI) 46 92 Long-Term Orientation Versus Short-Term Normative Orientation (LTO) 26 88 Indulgence Versus Restraint (IVR) 68 42 Political and Economic Profile Japan and the United States have a long history of trade and commerce. These countries can supply both imports and exports of needed and desired commodities to any of these markets because of the size of these markets. When it comes to Foreign Direct Investments (FDI), the United States and Japan work together; in 2020, FDI was estimated to be worth approximately $132 billion for the former and $648 billion for the latter. Both of these countries have high-income levels due to their ranking in the top three economies in the world, which makes them great markets for firms operating in them to import and export. The democratic elections held in both countries differed in a few ways. The president of the United States is chosen directly by the people. Nonetheless, the Japanese prime minister was chosen by the members of the House of Representatives and the House of Councilors. This procedure is called the National Diet. Category United States Japan Political System Federal Democratic Republic Parliamentary Government with a Constitutional Monarchy Current Leaders Joe Biden Fumio Kishida Economic Classification High Income High Income Economic Blocs Impacting Trade WTO, NAFTA WTO, EPA Gross Domestic Product $23.32 Trillion $4.9 Trillion Purchasing Power Parity 1 LCU 100.4 LCU Gross Domestic Product Per Capita 70,248.63 USD 39,312.66 USD Legal and Regulatory Profile The business relationship between the United States and Japan is highly valued by both sides. This is supported by data showing that Japan ranks as the United States' fourth-largest total business partner. US exports to Japan total $112 billion a year. Furthermore, both countries are active members of the United Nations and the World Trade Organization. Before we enter new markets, we need to make sure that local import tariffs won't result in a significant increase in the cost of our product. However, import taxes in Japan vary from 20% to 0%. Our product is currently subject to a 3% tariff and is classified as "plastics and products thereof". We already know that filing income taxes in Japan will be necessary for our company. Currently, subsidiary income tax applies

on 23.2% of income. State corporate income tax (7.5%) and federal corporate income tax (21%), which are the two types of company taxes in the US, are separated. We may earn more money in Japan because it has lower taxes than other nations. Section Three: Market Considerations Monetary Considerations The performance of a business operating globally is impacted by currency exchange rates. Similar to the US, Japan has social and economic issues like unemployment, inflation, and natural catastrophes. It's also critical to realize that the exchange rate is subject to daily fluctuations. The value of money is determined by the supply and demand for services; if US dollars are in high demand in Japan, their value will increase, as demonstrated by the fact that 1 USD is equivalent to 144.78 JPY. Changes in exchange rates have a big effect on foreign businesses. If we choose to sell phone covers in Japan and our US- based company determines the pricing in USD, for example, we must make sure that the price we establish allows us to maintain a profit margin in that market. Global business management thus requires an awareness of the factors influencing currency rates as well as the financial risk associated with volatile international markets. Category The U.S. Dollar Japan Exchange Rate 1 USD = 144.78 JPY 1 JPY = 0.0069 USD Management and Logistics Considerations Being a part of a multicultural team offers benefits and drawbacks. Human resources departments should consider managerial and logistical tactics, like overcoming language barriers, gaining a grasp of work and cultural customs, and using technology to promote teamwork, when shifting operations to Japan. One way to deal with language barriers could be to designate fluent speakers to act as interpreters during important meetings. Avoiding slang also reduces the possibility of misinterpretations of word meanings. Working with a multinational workforce means that you must be aware of the different work schedules that employees have and respect their national holidays. By demonstrating your admiration and appreciation for their culture and team, you will increase productivity. Using tools like Microsoft Teams or Zoom, you can remotely connect with your team while thinking about logistics. Flying representatives to a central location regularly is inefficient in terms of money and time. If we make use of technology, we will be able to hold meetings more frequently and without worrying about travel time. Mode of Entry Considerations Conventional entrance strategies, such as exporting, forming partnerships strategic alliances, and acquisitions, are all viable options because they are low risk and frequently occur quickly. Nonetheless, collaborating with a regional distributor and using them as an agent is the most popular approach to breaking into the Japanese market. It could be simpler to connect with importers, purchasers, and other distributors when you work with a local distributor. Poor distribution, increased costs, and less control over the selling process are a few drawbacks. You give up all control over the selling process when you work with a distributor; the agent may market and sell the products in a way that annoys you or even harms the company's reputation. Furthermore, there's no guarantee the distributor you contacted will be successful; they could be struggling to sell your products, which would mean a loss of income. It will also cost more to sell through a distributor; therefore, prices could need to go up to compensate for these expenses. It is essential to find a distributor you can rely on and get along with so that your

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products are sold and promoted in a way that fairly represents your business. To find out how much you should charge for your items, you should also bargain over prices and company plans. References 1001 simplified tariff applicable to goods at a total value of 200,000 yen or less (General ImportFreight and International Parcel Post ) (FAQ). Japan Customs. (n.d.). Retrieved November 15, 2023, from https://www.customs.go.jp/english/c-answer_e/imtsukan/1001_e.htm Country comparison. Hofstede Insights. (2021, June 21). Retrieved November 13, 2023, from https://www.hofstede-insights.com/country-comparison/japan/ CRS reports - congress. (2022, November 9). Retrieved November 16, 2023, from https://crsreports.congress.gov/ Fundamental structure of the government of Japan. Prime Minister of Japan and His Cabinet. (n.d.). Retrieved November 20, 2023, from https://japan.kantei.go.jp/constitution_and_government_of_japan/fundamental_e.html

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