Investment and Japan Essay

1. Why, historically, has the aim of FDI in japan been so first gear? 2. What are the potential benefits to the Nipponese economy of greater FDI? 3. How did the entry if Walmart into the Japanese retail sector benefit that sector? Who lost as a result of Walmarts entry? 4. Why has it been so hard for Walmart to shape a profit in Japan? What might the company take a crap done differently?Japan, an island nation on the Pacific ocean, has none of the indwelling advantages that curb facilitated cross-border trade and investment in other parts of the world. Also, Japan was badly defeated in World War II and occupied by Allied forces at the end of the war. Japan was totally closed(a) to foreign investment during that period. The Japanese government sets up important barriers to shrivel the foreign direct investment into Japan to develop the country by avoiding other countries financial shocks. Additional, the high rental and labor cost wallop the Foreign Direct Investment level too. Japan as a host country, a greater FDI can result from the resource-transfer effect, employment set up, balance-of-payments effects on competition and economic growth. Walmart entered the Japanese market by get large stakes in similar retailer Seiyu.Walmart helped Seiyu reorganized the structure, implement point-of -sale and SMART inventory tracking systems, supply-chain and distribution management systems,etc. Walmart gave a isolated American strategy lesson to the Japanese retail assiduity. Walmart also increased the the level of competition in Japan, it resulted in stimulating the developing retail industry and lowering the price of products to improve economic growth in Japan. tho Walmart as a foreign investor in Japan did not recognize profits from 2000-2010. During the years of losses in Japan, Walmart still believed the American look retail store can grow anywhere in the world. They have made similar mistakes just like in Germany.Walmart failed to grasp the occ urrence that the consumer and retail environment in Japan has a different close. In Japan, people puts loyalty on a highest value. Its difficult to fall out the consumers from local 7-eleven to foreign Walmart. Every day lower price strategy is not enough power to change Japanese consumers buyingbehavior. Japanese consumers tendency to buy smaller quantities and good packaging or show of goods. The quality of product also play a huge position in their purchasing decisions. For Walmart, better understanding of Japans culture and improving relationship with supplier may help them move antecedent to success in Japan.