Question

1. You work for a company that produces and manufactures products made with Gore-tex, a particular type of fabric that is both waterproof, breathable and keeps people warm. Your company has a wide range of products from outdoor jackets and clothing, to special blankets and specialized clothing worn by firefighters and rescue operators. Your company does $1.4 billion dollars worth of business a year. This year your Board of Directors has suggested moving into the Asian market; Japan, China, South Korea, or Taiwan. Some of the directors are in favour of the move, citing that this market is set to grow, especially China. Others are more cautious and point to China’s governmental problems, human rights violations and the issue of SARS.

They have asked your department to prepare a country profile to help them make their decision. They know they will move into one of these markets, they are just not sure which one. They would like your department to do a comparison study.

You must compare two countries—Japan/China, or Taiwan/South Korea. The Board of Directors want a profile comparison to determine which of the countries would be best to move into the Asian market. They wish to know the following:

1. What are the government regulations regarding establishing a foreign business?

2. What would living conditions be like for Canadian executives and mangers and their families if they had to live in these countries for extended periods?

3. What would the average wages and conditions be for possible employees?

4. Are there any possible political concerns?

5. Are there any social or cultural concerns?

Answer 1

JAPAN

Japan is the third largest economy in the world.Japan is a leading centre for innovation, highly attractive business and living environment with in one of the world's largest economies.

Foreign companies wishing to engage in continous transaction in Japan must register in the country. To do so, they must at least register

1. The appointment of a representative in Japan.

2. The establishment of a branch office.

3. A Japanese corporation

4. A partnership.

Japan, the GDP per capita in $ 42,800. Japan has a reputation for its high living costs. Foreign nationals working in Japan earn an average 223,100 Yen per month or around 73% of the national average.It is equal to $2,068.

The biggest problems it faces sinking economy, sinking birth rate, radiation, crime and punishment, discrimination, are the main social issues in Japan. Although Japan is Commonly known as Peaceful and well-ordered country.

CHINA

China is the world 'ട ടecond largest economy. China's new foreign investment law appearട to drastically open the country up to foreign investment-what with an everdecreasing "negative list", aimed at eradicating intellectual property restrictions and simplified corporate governance rules, among other investor-friendly regulations.

At Iess than 27% Chinese per capita GDP remains at a rather low level when compared to US per capita GDP. A person working in China typically earns around 29,300CNY per month. Bloated Staffing in civil serrices and redundant government agencies, corruption, wasting public funds etc are the main political issues in China. Regional imbalances, crime, social unrest, etc are the major social issues in China.

Compare with Japan and China, China is the best Asian market for investment.