International Business Relations Essay - 1925 Words

International Business Relations (Essay Sample) Content: Name:Tutor:Course:Date:International BusinessThe political environment Government and government typeThe United Arab Emirates, one of the most commercialized centers in the world, is a union of seven emirates, including Dubai. Its form of government, constitutionally acquired in 1971, gives a monarchial provision for governance. It is also one of the greatest federations in the Asian region, especially western Asia. The different emirates are under separate governments, each governed by rulers but the federation, on a national level is led by a president, elected or reaffirmed in a five-year term period. Although the emirate rulers elect the president and the prime minister, emirs, these posts are considered hereditary and consequently, two main emirs have undertaken full control of the region. A positive with the leadership is that it provides policies for fair business practices (Bent 15). Similarly, the government of Japan is also a monarch, formally constituted under the constitution. However, instead of the emirates sections of division like in the above case, this government constitutes a parliamentary system of governance, with a powerful prime minister and a less powerful or ceremonial Emperor. The prime minister holds the mandate to select and give responsibilities to the members of the cabinet. Japan is also home to numerous industries due to high business activities (Yoshitomi 8). Government ownership of business, privatization and government protectionism In the United Arab Emirates, the government gives strict regulation of business by foreigners. It requires that, in the process of setting up a corporation in the Middle East, a majority shareholding be entitled to the national government. Although this provision is changing, this law does not apply to areas that have been set aside for investment practices. Such zones are referred to as FTZs (Johnson 56). In Japan though, the case is somewhat different. Although both governme nts put down provisions for portion-acquisition of investments prior to incorporations, the degree of each government demand varies highly. For instance, the Japanese government only requires that foreign investors incorporate a Japanese permanent resident even with as little as 10% of total ownership. However, financial liability is strongly vested on shareholders, such that follow-up of personal property is possible. Major changes in japans industrial and investment sector have led to respective changes in types of privatization. While the country initially provided for small scale businesses, sole proprietorships are only intended for the Japanese.. This means that DubaL will have to enter the market as incorporation and seek potential shareholders. This issue only gets complicated given that the Japanese government made serious changes as regards small and medium sized company incorporations. Classifying them into two groups, for local companies and the third considered as a l arge company, the government increased minimum capitals to three million yens for Y.K and ten million yens for K.K class. This is an implication that DubaL will have to make financial preparations and thus arrangements the expansion exercise. Trade agreements, stability and laws Trade agreements in the Middle East indicate liberalization. They include free trade zones full tax exemptions, supportive programs of incorporation of one resident for the purposes of helping but the greatest problem is the majority share holding by the state. This aspect heavily reduces company returns after closure of fiscal results. There is appositive in Japan, whereby the government does not require shareholding but demands that one permanent resident can have a minimum of ten percent shareholding, and then a business commences. According to Yoshitomi (58) tax reductions in the Middle East are also supportive to the business environment, but the enormous, financial capital, background offered in Japan exceeds the tax reductions offered in the Middle East. Both of the United Arab Emirates and Japan offers remarkably stable governments. For long periods, there have never occurred events suggesting otherwise. For instance, the Middle East is always abundant with news of civil and thus political violence, putting into doubt the suitability and security of the region for potential investors. However, the peace that observed for long in the UAE is sufficient to predict similar future trends in the region (Johnson 75). Law is a highly regarded aspect of peace and security in any partaking. In business regard, unfavorable laws negatively affect businesses. For instance, various laws are unfavorable to business practitioners in the Middle East. These include compelling restrictions to give 51 percent shareholding to the national government or seek a potential partner in order to realize this requirement. Secondly, distribution and agency laws require that UAE citizens and not foreign ers carry out these responsibilities. However, the scenario is different Economic environmentJapan remains among the countries with the largest economies in the world, coming third after the USA and China. Made of several highlands, the capital Tokyo has one of the largest populations of cities in the world and occupies the greatest space that can combine two American cities. Its infrastructure is extremely well defined. With large networks of airports, roads, railways and sea ports. These facilitate movement of resources from one location to another. The natural climate of the region varies from one island to the other. The northern part of the islands experiences chilly weather conditions while the southern parts receive subtropical conditions. These are in contrast to the UAE, which holds a hot and dry one throughout the year (Johnson 25). Given that most of Japan is highly mountainous, most of the regions are highly cultivated, in that only town areas are uncultivated. Among th e foremost economic activities of the region include manufacturing, industrial, coal and mineral mining, heavy industries and automobile. The central region provides for a production and manufacturing heartland and has thus one of the greatest infrastructure networks in Asia. Achieving competition in this region is a daunting task for newly coming companies like DubaL, unlike its dominance in the lowly industrialized UAE. Bent (30) argues that population density in the UAE is diverse a highly integrated. The situation is different in Japan. Given the bureaucratic mode of government, drafting and implementation of policies coupled with highly expensive costs of living, the central island, which is the mostly populated in the whole of the country, immigration has been limited from other countries. Consequently, the population of the country is decreasing. Provision of labor resources to new companies like DubaL implies labor reconsideration practices before implementation of expansi on. Social environment While market expansion is a recommendable global competition strategy, landing in some regions may bring in financial unpleasantness. Compared to the Dubai market which contains highly vibrant human resource- people- with additional favorable policies for acquisition of human resource through mutual agreements, there is a worrying trend in Japan as regard human resource. Government statistics released recently indicate that a majority of the population of the country consist of the old. Recent reports also indicate that most of the industries, especially agricultural, have been fully abandoned for lack of enough young people interested in these industries and consequently, they are on the decline (Sat 12). The report further indicates that approximately sixty percent of the total population consists of individuals of more than forty years of age. This is a reflection of an emerging human resource crisis, imminent in the near future (Ellington 52). This worry ing statistical relevance also gives implications that the cost of maintaining the old in by the government will be too high in the near future. Various efforts by the government to increase taxes, which cannot be passed over to a consumer, in preparation for this exercise have only continued to reduce financial gains of investment entities. DubaL should thus take this issue into serious consideration. Other sensitive areas that need immediate attention are language and religion. In Japan, the government provides that all registering business entities have their certificates of incorporation done under the Japanese language. With an overall emphasis on wide use on the use Japanese language, other languages are rarely used. It is reported that the use of other languages is minimal, although English is predominantly used for interactive reasons. This is unlike in Dubai where there is liberalization on the use of the latter (IBL 25). Therefore, DubaL should prepare for acquisition of this imperative for business success in Japan. Japanese aesthetics is a central element in Japanese culture, and it is usually accorded greater value than what the West does accord theirs. Although it is deeply rooted into their culture, it takes various dimensions, some of which have undergone transformations with time while others have just been discovered in the last decade (Leppert 41). Although highly varied in nature, Japanese culture does not give high recognition on metallic substances other than weapons such as the sword and guns. Therefore, although DubaL is a cent... International Business Relations Essay - 1925 Words International Business Relations (Essay Sample) Content: Name:Tutor:Course:Date:International BusinessThe political environment Government and government typeThe United Arab Emirates, one of the most commercialized centers in the world, is a union of seven emirates, including Dubai. Its form of government, constitutionally acquired in 1971, gives a monarchial provision for governance. It is also one of the greatest federations in the Asian region, especially western Asia. The different emirates are under separate governments, each governed by rulers but the federation, on a national level is led by a president, elected or reaffirmed in a five-year term period. Although the emirate rulers elect the president and the prime minister, emirs, these posts are considered hereditary and consequently, two main emirs have undertaken full control of the region. A positive with the leadership is that it provides policies for fair business practices (Bent 15). Similarly, the government of Japan is also a monarch, formally constituted under the constitution. However, instead of the emirates sections of division like in the above case, this government constitutes a parliamentary system of governance, with a powerful prime minister and a less powerful or ceremonial Emperor. The prime minister holds the mandate to select and give responsibilities to the members of the cabinet. Japan is also home to numerous industries due to high business activities (Yoshitomi 8). Government ownership of business, privatization and government protectionism In the United Arab Emirates, the government gives strict regulation of business by foreigners. It requires that, in the process of setting up a corporation in the Middle East, a majority shareholding be entitled to the national government. Although this provision is changing, this law does not apply to areas that have been set aside for investment practices. Such zones are referred to as FTZs (Johnson 56). In Japan though, the case is somewhat different. Although both governme nts put down provisions for portion-acquisition of investments prior to incorporations, the degree of each government demand varies highly. For instance, the Japanese government only requires that foreign investors incorporate a Japanese permanent resident even with as little as 10% of total ownership. However, financial liability is strongly vested on shareholders, such that follow-up of personal property is possible. Major changes in japans industrial and investment sector have led to respective changes in types of privatization. While the country initially provided for small scale businesses, sole proprietorships are only intended for the Japanese.. This means that DubaL will have to enter the market as incorporation and seek potential shareholders. This issue only gets complicated given that the Japanese government made serious changes as regards small and medium sized company incorporations. Classifying them into two groups, for local companies and the third considered as a l arge company, the government increased minimum capitals to three million yens for Y.K and ten million yens for K.K class. This is an implication that DubaL will have to make financial preparations and thus arrangements the expansion exercise. Trade agreements, stability and laws Trade agreements in the Middle East indicate liberalization. They include free trade zones full tax exemptions, supportive programs of incorporation of one resident for the purposes of helping but the greatest problem is the majority share holding by the state. This aspect heavily reduces company returns after closure of fiscal results. There is appositive in Japan, whereby the government does not require shareholding but demands that one permanent resident can have a minimum of ten percent shareholding, and then a business commences. According to Yoshitomi (58) tax reductions in the Middle East are also supportive to the business environment, but the enormous, financial capital, background offered in Japan exceeds the tax reductions offered in the Middle East. Both of the United Arab Emirates and Japan offers remarkably stable governments. For long periods, there have never occurred events suggesting otherwise. For instance, the Middle East is always abundant with news of civil and thus political violence, putting into doubt the suitability and security of the region for potential investors. However, the peace that observed for long in the UAE is sufficient to predict similar future trends in the region (Johnson 75). Law is a highly regarded aspect of peace and security in any partaking. In business regard, unfavorable laws negatively affect businesses. For instance, various laws are unfavorable to business practitioners in the Middle East. These include compelling restrictions to give 51 percent shareholding to the national government or seek a potential partner in order to realize this requirement. Secondly, distribution and agency laws require that UAE citizens and not foreign ers carry out these responsibilities. However, the scenario is different Economic environmentJapan remains among the countries with the largest economies in the world, coming third after the USA and China. Made of several highlands, the capital Tokyo has one of the largest populations of cities in the world and occupies the greatest space that can combine two American cities. Its infrastructure is extremely well defined. With large networks of airports, roads, railways and sea ports. These facilitate movement of resources from one location to another. The natural climate of the region varies from one island to the other. The northern part of the islands experiences chilly weather conditions while the southern parts receive subtropical conditions. These are in contrast to the UAE, which holds a hot and dry one throughout the year (Johnson 25). Given that most of Japan is highly mountainous, most of the regions are highly cultivated, in that only town areas are uncultivated. Among th e foremost economic activities of the region include manufacturing, industrial, coal and mineral mining, heavy industries and automobile. The central region provides for a production and manufacturing heartland and has thus one of the greatest infrastructure networks in Asia. Achieving competition in this region is a daunting task for newly coming companies like DubaL, unlike its dominance in the lowly industrialized UAE. Bent (30) argues that population density in the UAE is diverse a highly integrated. The situation is different in Japan. Given the bureaucratic mode of government, drafting and implementation of policies coupled with highly expensive costs of living, the central island, which is the mostly populated in the whole of the country, immigration has been limited from other countries. Consequently, the population of the country is decreasing. Provision of labor resources to new companies like DubaL implies labor reconsideration practices before implementation of expansi on. Social environment While market expansion is a recommendable global competition strategy, landing in some regions may bring in financial unpleasantness. Compared to the Dubai market which contains highly vibrant human resource- people- with additional favorable policies for acquisition of human resource through mutual agreements, there is a worrying trend in Japan as regard human resource. Government statistics released recently indicate that a majority of the population of the country consist of the old. Recent reports also indicate that most of the industries, especially agricultural, have been fully abandoned for lack of enough young people interested in these industries and consequently, they are on the decline (Sat 12). The report further indicates that approximately sixty percent of the total population consists of individuals of more than forty years of age. This is a reflection of an emerging human resource crisis, imminent in the near future (Ellington 52). This worry ing statistical relevance also gives implications that the cost of maintaining the old in by the government will be too high in the near future. Various efforts by the government to increase taxes, which cannot be passed over to a consumer, in preparation for this exercise have only continued to reduce financial gains of investment entities. DubaL should thus take this issue into serious consideration. Other sensitive areas that need immediate attention are language and religion. In Japan, the government provides that all registering business entities have their certificates of incorporation done under the Japanese language. With an overall emphasis on wide use on the use Japanese language, other languages are rarely used. It is reported that the use of other languages is minimal, although English is predominantly used for interactive reasons. This is unlike in Dubai where there is liberalization on the use of the latter (IBL 25). Therefore, DubaL should prepare for acquisition of this imperative for business success in Japan. Japanese aesthetics is a central element in Japanese culture, and it is usually accorded greater value than what the West does accord theirs. Although it is deeply rooted into their culture, it takes various dimensions, some of which have undergone transformations with time while others have just been discovered in the last decade (Leppert 41). Although highly varied in nature, Japanese culture does not give high recognition on metallic substances other than weapons such as the sword and guns. Therefore, although DubaL is a cent...