'Investment and Japan Essay\r'

'1. Why, historically, has the direct of FDI in lacquer been so low? 2. What are the potential benefits to the Nipponese economy of great FDI? 3. How did the entry if Walmart into the Nipponese retail sector benefit that sector? Who lost as a aftermath of Walmart’s entry? 4. Why has it been so hard for Walmart to make a benefit in Japan? What might the familiarity have done disparately?\r\nJapan, an island demesne on the Pacific ocean, has none of the innate advantages that have facilitated cross-border trade and investment in former(a) parts of the world. Also, Japan was hard defeated in World contend II and occupied by confederative forces at the end of the war. Japan was solely closed to foreign investment during that period. The Nipponese government sets up important barriers to humiliate the foreign direct investment into Japan to develop the country by avoiding other countries’ financial shocks. Additional, the high rental and grate cost impact th e Foreign deal Investment level too. Japan as a host country, a greater FDI can result from the resource-transfer effect, employment effectuate, balance-of-payments effects on competition and economic maturation. Walmart entered the Japanese market by purchasing epic stakes in similar retailer Seiyu.\r\nWalmart careed Seiyu reorganized the structure, implemented point-of -sale and SMART fund tracking systems, supply-chain and distribution management systems,etc. Walmart gave a free American strategy lesson to the Japanese retail industry. Walmart in addition increased the the level of competition in Japan, it resulted in bear on the developing retail industry and gravid the price of products to improve economic call onth in Japan. But Walmart as a foreign investor in Japan did non make profits from 2000-2010. During the years of losings in Japan, Walmart still believed the American room retail store can grow anywhere in the world. They have do similar mistakes just like in Germany.\r\nWalmart failed to grasp the fact that the consumer and retail surround in Japan has a different culture. In Japan, people puts loyalty on a highest value. It’s difficult to operate the consumers from local â€Å"7-eleven” to foreign â€Å"Walmart”. â€Å"Every daylight lower price” strategy is not enough power to change Japanese consumers defileing behavior. Japanese consumers tendency to buy smaller quantities and good packaging or appearance of goods. The quality of product also play a huge enjoyment in their purchasing decisions. For Walmart, better understanding of Japan’s culture and astir(p) relationship with supplier may help them move forward to success in Japan.\r\n'