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Japan country risk analysis
Finance & Accounting
Pages 7 (1757 words)
Name: Instructor: Task: Date: Japan Country Risk Analysis Introduction In assessing the viability of locating or starting a business in a foreign country, a country risk analysis is vital in allowing investors to identify associated risks or opportunities that might affect the business in future.
Consequently, this paper undertakes a country risk analysis of Japan to understand its business environment for investors intending to invest in that country. Japan is located in the Eastern Asian market that is home to the top five countries with the largest growth domestic products (GDP) (AMB, 2012). Country Risk Analysis Japan has for long been considered to be a peaceful and calm environment for investors intending to expand their investments worldwide. This has been due to its stable economic, political and social environment that is favorable to the growth and survival of a business. However, the country has experienced unprecedented external forces in the latest times such as the recent global financial meltdown in 2009 and tsunami earthquake in 2010 that negatively affected its economic environment (SEB, 2012). Economic environment of a country is very crucial in enabling the survival of a multinational entity since it enables a positive demand for its products. Furthermore, it enables the investors to access credit at lower and affordable rates to start a business (Carbaugh, 2011). This series of negative external forces caused the GDP of the country sink to -5.8% for the first time since the end of East Asia financial crisis of 1990 (AMB, 2012). ...
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