Investment and Japan Essay

1. Why, historically, has the take aim of FDI in Japan been so low? 2. What are the potential benefits to the Japanese economy of greater FDI? 3. How did the gate if Walmart into the Japanese sell sector benefit that sector? Who lost as a result of Walmarts entry? 4. Why has it been so hard for Walmart to make a profit in Japan? What great power the company feel done differently?Japan, an island nation on the Pacific ocean, has none of the natural advantages that have facilitated cross-border trade and investment funds in other parts of the world. Also, Japan was badly defeated in beingness War II and occupied by Allied forces at the end of the war. Japan was totally unsympathetic to outside investment during that period. The Japanese government sets up important barriers to reduce the foreign direct investment into Japan to develop the country by avoiding other countries financial shocks. Additional, the high rental and labor court impact the Foreign Direct Investment level too. Japan as a host country, a greater FDI can result from the resource-transfer effect, employment effects, balance-of-payments effects on competition and economic growth. Walmart entered the Japanese food market by purchasing large stakes in analogous retailer Seiyu.Walmart helped Seiyu reorganized the structure, implemented point-of -sale and orthogonal inventory tracking systems, supply-chain and distribution management systems,etc. Walmart gave a free American strategy lesson to the Japanese retail patience. 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. But Walmart as a foreign investor in Japan did not make profits from 2000-2010. During the years of losses in Japan, Walmart still believed the American style retail store can grow anywhere in the world. They have made similar mistakes just like in Germany.Walmart failed to grasp the fact that the consumer and retail environment in Japan has a different culture. In Japan, people puts loyalty on a highest value. Its difficult to pursue the consumers from local anaesthetic 7-eleven to foreign Walmart. Every day lower price strategy is not enough power to limiting Japanese consumers buyingbehavior. Japanese consumers tendency to buy smaller quantities and good packaging or display of goods. The quality of product also play a huge role in their purchasing decisions. For Walmart, go against understanding of Japans culture and improving relationship with supplier may help them belong forward to success in Japan.