Pest Analysis of Japan

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PEST Analysis of Japan
Political Environment
-Political Stability and Absence of Violence/Terrorism ranked Japan in 44th with +0.94 score(less violent and more stable). Japan also was ranked in 31st with +1.25 scores in complete absence of corruption [1] -Restrictions access harmful published materials and allow regulate excessive disruption of social order but no restrictions on access to the internet [2] -Industrial policies influenced specific industries to gain international competitive advantage, increase productivities and industrial investment.[3] -Inflexible labour market because of lifetime employment guarantees and seniority-based salaries [4] -Japanese government related organization(Jetro) support foreign companies to expand and invest in Japan and some special Zones corporate has special advantages ,such as, income tax deductions of 20%, investment tax credits or special depreciation and special tax ratio [5][6] -no re-entry permission when re-entering Japan within 1 year and cancel Alien cards, using a residence card instead [5] Economic Environment

-The fourth-largest economy in the world after second-place China [8] -Word rank in economic : 22nd Asia–Pacific region rank: 7th from 41st [8] -Economic freedom score: 71.6 from 100 , good in all area(means more freedom, it is 1.2 point lower than 2011 because of government spending’s control)[8] -GDP (PPP): $4.3 trillion 3.9% growth;0.1% 5-year compound annual growth; $33,805 per capital and GDP declined almost 0.5% in 2011 because disaster [8] -Unemployment: 5.1%Inflation (CPI): -0.7%FDI Inflow: $-1250.9 million[8] -Free trade agreement with EU and others[8]

-Industry, value added (% of GDP) : 27.4% [7]
-Large and growing public debt (205.5% of GDP (2011 est.) from restructuring the economy [6] -Economic expansion is driven by export and the economy is a same size as in 1992 because government taxation and failed stimulator spending.[6] -Japanese financial “big bang” is...
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