The Effects of the Global Financial Crisis of 2008 on Japan and Resultant Pest Analysis

Topics: Economics, Economy, Recession Pages: 4 (1190 words) Published: April 28, 2013
Effects of global financial crisis and PEST Analysis – Japan Political
* A majority centre-left political party rules Japan (DPJ) * Yoshihiko Noda is its seventh Prime Minister in six years. The previous PM resigned due to a poor approval rating due to his handling of the Tohoku earthquake and the Fukushima nuclear disaster. * On-going issue with South Korea/China regarding islets, hesitation over nuclear power and a bill to raise consumption tax maybe enough to oust Noda from power. Island dispute has led to forecasts suggesting fourth quarter Japanese car sales in China are to drop 70%, leading to a dip in GDP. * 90.5% in control of corruption study, 78.2% in regulatory quality and 79.2% in political stability/absence of violence. * 8.0 on TI’s CPI index of 2011.

* There are plans to significantly change the ineffective bureaucracy of the civil service by reassigning senior employees into private companies. The practice is thought to bind public and private sector and prevent political and economic change. Economic

* Member of the G8 and has the world’s 3rd largest economy (GDP = $5.869tn). Its major industries include cars, steel, electrical goods and it is a leader in innovation. Japan is 24th in the ‘ease of doing business’ survey (World Bank, 2011), down four places from 2010 mainly for excessive bureaucratic procedure. * It has a liberal manufacturing sector but protectionism still prevalent in the agricultural industry. Also, high tariffs and import quotas are imposed on foods. Certain services are subject to licencing and restrictions on foreign investment. Trade reforms in the services sector have slowed with the exception of the airline industry due to the pursuit of ‘open skies’ agreements. There are non-discriminatory restrictions on the establishment of large-scale stores, zoning and import licences. * Exports fell 10% in September 2012 as imports rose 4.4%. Japan has a stagnant economy with a sovereign debt that...
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