JAPAN
Capital: Tokyo
Land Area: 377,972.28 km2 (62nd)
Population: 127,110,047/
Current Constitution Adopted in May 3, 1947 [ Modern Japan ]
Often called ‘Land of the Rising Sun’
The Japanese Language
Japanese (Nihongo ,spoken by around 128 million native speakers, is the national
language of Japan
The literacy rate in Japan is said to be close to 100% of the population, and the country
boasts a rich print culture, with one of the world’s highest rates of newspaper circulation.
The Japanese writing system makes use of three alphabets: kanji logographic characters
adopted from China, and the native phonetic alphabets, hiragana and katakana.
Currency of Japan
The Yen (¥ / 円 / JPY) is the official currency in Japan.The Bank of Japan
issues four types of Japanese paper banknotes, and 6 different coins.
The banknotes, with value denominations of ¥1,000, ¥2,000, ¥5,000, and
¥10,000.The coins have value denominations of ¥500, ¥100, ¥50, ¥10, ¥5, and
¥1. Both ¥5 and ¥50 coins have a round hole in the middle .
Reloadable electronic cash cards are also widely used to pay transportation
fees, vending machines, and an increasing number of shops.
Some facts about Japan
 World’s third largest economy.
 One of the highest purchasing power country in the world.
 GDP per capita: 38,633.71 USD .
 Gross domestic product: 4.92 trillion USD.
 GDP growth rate: 1.6% annual change .
 Gross national income: 4.812 trillion PPP dollars .
 Internet users: 86.2% of the population.
 GNI per capita: 37,790 PPP dollars.
 HDI 0.891 [very high]
FIVE REASONS TO INVEST IN JAPAN
1-Japan’s Re-Emergence
Japanese currency is back on track after lost
two decades. Through abe-nomics large
scale monetary easing ,tax forms and
various de-regulation,it is showing
growth again.
2 Sophisticated Market
● A huge and sophisticated market exists in japan.
● Japan’s GDP is nearly 500 trillion Yen.
● Japan boasts large scale economic power
3. INNOVATION HUB
● Japan has an intellectual accumulation that
generates innovation.
● “Research funding as a percentage of GDP”
and “number of researchers per 10,000 people” are among the largest in the world.
4. Business friendly infrastructure
● Japan’s business environment is higly evaluated in
world economic’s forum “The global
competitiveness Report 2014-2015”
5. COMFORTABLE LIVING
● Japan has longest life expectancy in the world.
● Average life expectancy is ranked 1st in the world.
Five Promises for Attracting Foreign Businesses to Japan
1.Overcome language barriers at retailers and restaurants
2. Facilitate better Internet connectivity;
3. Accommodate business jets at local airports;
4. Enhance educational environment for expatriate children; and,
5. Strengthen advisory and consultation services to support foreign
businesses, which are aimed at developing an environment for
foreign-affiliated companies to do business easily and improving the
living environment for foreigners.
 Japanese sense of loyalty to trusted partners invite foreign investors to start business in Japan as it helps
them in the long run.
 Japanese believe in customer satisfaction more than any other country in the world. Each and every
employee no matter what his work is does it to provide maximum satisfaction through service.
 All the Japanese are service oriented and service is the pillar of Japanese Business.
 Even Japanese Salesmen, foreign product distributors speak English unlike other countries in Asia also
they give and expect politeness from other party for long establishing business relationships.
JAPANESE BUSINESS CULTURE
JETRO
Japan External Trade Organization , is an independent government agency incorporated as a
nonprofit corporation in Osaka in February 1952, and reorganized as the Ministry of
International Trade and Industry (MITI) in 1958 to consolidate Japan's efforts in export
promotion.JETRO maintaines seventy-three offices in fifty-five countries, as well as thirty-six
regional offices in Japan, with a total staff of 1,500. Its main office is located in the Ark Mori
Building, Tokyo. Initially, JETRO's activities focused mainly on promoting exports to other
countries. As exporters established themselves in world markets and the balance of trade
turned from deficit to surplus, however, JETRO's role shifted to encompass more varied
activities. These have included the furtherance of mutual understanding with trading partners,
import promotion, liaison between small businesses in Japan and their overseas counterparts,
and data dissemination. Import promotion services have included publications, promotion of
trade fairs, seminars, and trade missions.
JETRO also provides information and support to foreign companies looking for
successful entry and expansion in the Japanese market. JETRO provides a wide range
of services, such as timely market intelligence, extensive business development
support, and relevant business events, designed to encourage new business between
foreign companies and Japan. JETRO also provides current information on the laws
and regulations surrounding new business operation in Japan to assist companies in
expanding their business to Japan.
INCENTIVES GIVEN BY JAPAN TO ATTRACT FDI-
I.SUBSIDARY PROGRAMME FOR GLOBAL INNOVATION CENTER
TAX INCENTIVES for companies that relocate their headquarters from the 23 wards in Tokyo to
other regions, or that enhance and expand the function of their headquarters in those regions
Incentives regarding Special Zones
TAX INCENTIVES TO PROMOTE CAPITAL INVESTMENT
I.IMMEDIATE DEPRECIATION OF ASSETS OR TAX CREDIT UP TO 5%
II.SPECIAL DEPRECIATION OF 50% OF ASSETS OR TAX CREDIT OF 4%
FDI
According to the 2015 UNCTAD report on world investment, Japan was the 13th most
attractive destination for multinational companies over the 2015-2017 period. In
2014, the influx reached USD 10 billion.
Small Business Investment Opportunities in Japan
1. Pharmaceutical: Japan has the world’s 2nd largest pharmaceutical industry with a
total market value of over $60 billion.
2. Information technology
3. Energy: As Japan keeps developing by the day, the rate of energy consumption in the
country is increasing.
4. Retail: Retailing is very lucrative, there is a large population to cater to, and so the
market is large and the opportunities are unlimited.
5. Manufacturing: Japan has many manufacturing firms because the country is rich in the
raw materials used in most industries.
6. Agriculture:Agriculture thrives in any economy because of the ever-huge demand for
food and other agricultural products.
7. Real estate: Highly developed country, real estate is a good investment.
8. Business consulting services: Because more foreigners are becoming aware
of the huge business opportunities in Japan, new businesses by foreigners
spring up daily.
9. Alternative medicine: Alternative medicine is a lucrative sector in Japan, just
as is the case in countries like China and India.
10. Jewelry
Japanese women love fashion. And for this reason, there is huge demand in the
country for women’s clothes, shoes, and jewelry.
Research and Development Field
In recent years, there has been a move by foreign-affiliated
companies to take advantage of Japan’s outstanding technologies
and know-how by establishing R&D centers in Japan with an eye to
the booming Asian market. Symbolic examples are the establishment
of R&D centers in Japan by Apple of the US and Nokia of Finland,
which were announced in succession. According to the “2015 Survey
of Trends in Business Activities of Foreign Affiliates” conducted by
the Ministry of Economy, Trade and Industry (METI), 670 (21%) of
3,332 foreign-affiliated companies in Japan have their R&D centers in
Japan. In the manufacturing industry, 310 of 594 companies, or over
half (52%), have their R&D centers in Japan (as of March 2015).
Utilization of National Strategic Special Zones
“National Strategic Special Zones” were established for
progressive reform of bedrock regulations in various fields
including medical care, tourism, and starting business. Since
the enactment of the act in December 2013, 10 areas have been
established as Special Zones. In these zones, the government is
promoting regulatory reform and other measures in a
comprehensive and focused manner in order to enhance the
international competitiveness of the industries and promote the
formation of hubs for international economic activities through i
ntensive structural reform of economic society.
Eg: Tokyo , Niigata, Kansai, Yabu, Okinawa
Protection of Foreign Investment
Bilateral investment conventions signed by Japan
Japan is a signatory to 12 conventions. Bilateral agreements with Australia,
the European Union and the Republic of Korea are currently being negotiated.
The Trans-Pacific Partnership was signed in February 2016.
For a list of conventions signed by Japan, consult the list prepared by UNCTAD.
Japan has been involved in no case of disagreement concerning foreign investment
and up to now, bilateral disagreements have given rise to no expropriation. UNCTAD
offers a database listing disagreements and the countries involved, complementary
information about the evolution of settlement of international disputes concerning
investment.
Organizations Offering Their Assistance in Case of Disagreement
ICCWBO , International Court of Arbitration: International Chamber of Commerce WTO ,
World Trade Organization Member of the Multilateral Investment Guarantee Agency
Japan has been a member since its creation.
THE ENERGY SECTOR
THE ENERGY SECTOR
 Japan is the world's largest liquefied natural gas importer, second-largest coal importer, and third-
largestnet importer of crude oil and oil products.
 Japan imports virtually all its fossil fuels, whereas very little fuel is needed for nuclear energy
generation.
 Japan spent about $270 billion, or around 58% more, for fossil fuel imports in the three years following
the Fukushima accident.
 Japan's current government intends to resume using nuclear energy as a baseload power source with
necessary safety measures.
 The government believes that the use of nuclear energy is necessary to help reduce current energy
supply strains and high energy prices faced by Japan's industries and end users.
 Japan is the third-largest petroleum consumer in the world. The country relies almost solely on imports
to meet its oil consumption needs because Japan's oil resources are very limited.
 Japan, the third-largest global net oil importer, is highly dependent on the Middle East for most of its
supply. The country is seeking to diversify its supply sources in Russia, Southeast Asia, and West Africa.
 Japan have accounted for about 37% of global LNG purchases since 2012, as the Fukushima disaster
spurred greater demand for LNG in the power sector.
 Nearly a third of the country's LNG imports are from Southeast Asia, but Japan has a diverse portfolio
of supply sources.
Electricity
 Japan was the world's third-largest producer of nuclear power, after the United States and France,
before the Fukushima Daiichi nuclear power plant accident in March 2011.
 After the Fukushima disaster, the composition of fuel used for power generation shifted to fossil fuels,
particularly LNG, which became the primary substitutes for nuclear power.
 Japan had 293 gigawatts (GW) of total installed electricity generating capacity in 2012.
 Nuclear capacity was 44 GW in 2012, constituting 15% of the capacity, although installed capacity fell to
42 GW by 2014 after the last two of the six Fukushima-Daiichi reactors were decommissioned.
 Hydroelectric facilities held 17% of the capacity and have been a steady source of power supply for
Japan for several years.
 The remaining capacity came from wind, solar, geothermal, and small biomass-fired plants.
 Japan's electricity industry is dominated by 10 privately-owned, integrated power companies that act
as regional monopolies, accounting for about 80% of the country's total installed generating capacity.
 The largest power company is TEPCO, which accounted for 22% of total power generation in the
country in 2012.
Transportation
Road Infrastructure in Japan :
There are over 1.2 million kilometres of roads in Japan, about 8,000 of which are expressways. As
Japan is technologically very advanced, most national roads and expressways have electronic speed
limit and notice signs. They keep you up to date on traffic congestion and accidents, two of the daily
side effects of driving in Japan.
Expressways :
Japan has an excellent network of national expressways which crisscross the islands.
Since the expressways were largely built on debt, they are now toll roads.
• This helps to regain construction costs little by little through contributions from
motorists . Most expressways measure toll by the distance a vehicle has travelled.
• The toll due is also dependant on the type of vehicle, for example, a truck or a
passenger car.
The harbours and ports
 There are 1020 ports in Japan, 22 of which are main ports of special purpose, 106 main ports
and 892 local ports.
 Most frequently port-managing organizations are city municipalities (395 ports) or prefecture
administrations (619 ports).
 The development of most significant for economics Japanese ports is financed 2/3 by
government means; the remaining part is financed by port-managing organizations.
Railways
• Railways in Japan play a central role in the intra city transport of commuters, the high-speed
intercity transport of travellers and the conveyance of many kinds of cargo.
• As such, railways are the most important mode of transportation in Japan today, playing a pivotal
role in the nation's industrial and social development.
• Development of railways has also contributed to environmental betterment, by reducing
dependence on private vehicles and thereby the adverse impact they have on the environment.
• The total length of lines operated in Japan is more than 27,200 km, with 20,100 km operated by
JR, 6,500 km by other private railways, and 600 km by subways.
• To meet the ever increasing demand placed on its railway system, Japan is constantly developing
and applying new technologies to improve its intracity and intercity passenger and freight railway
networks. These networks are renowned worldwide for their efficiency and safety.
• Since commencing operation in 1964, Shinkansen trains have transported more than 5 billion
passengers and maintained a perfect safety record.
Water sector
Water quality:
 The drinking water quality and the quality of waste water discharged into open
watercourses typically exceed national standards, water quality in rivers and lakes still
does not meet environmental standards. For example, the attainment rate of
environmental standards was 87% in 2005, but in lakes and marshes it was only 50%.
Water supply:
 New water distribution pipes are typically made from ductile iron and service pipes from
stainless steel. The share of pipes made of these materials increased from 40% for ductile
iron and zero for stainless steel in 1980 to 100% for both in 2006.
 The change in pipe materials is credited as a major factor in reducing water losses to one
of the world's lowest levels.
 Water treatment is usually through rapid sand filtration (76%), while 20% of water
utilities only disinfect water without additional treatment.
 Utilities increasingly adopt advanced water treatment methods such as activated carbon,
ozone disinfection and air stripping.
Procedures Relative to Foreign
Investment
• Freedom of Establishment – Guaranteed
• Acquisition of Holdings - Possible
• Obligation to Declare-The different obligatory declarations in Japan are:- when a company with capital in excess of JPY 2
billion acquires 10%, 25% or 50% of a Japanese company. - when a company with capital in excess of JPY 10 billion
acquires business from another company with more than a JPY 1 billion turnover.
• Competent Organisation For the Declaration-Ministry of Finance Japan Fair Trade Commission (JFTC)
• Requests For Specific Authorisations-The investment of foreign capital in agriculture, forestry, fishing, mines, oil, leather
and telecommunications must be first examined by the Japanese Government. Any investment in the banking, insurance,
energy, electricity, security and pharmaceutical sectors is subject to license.
Investment Opportunities
The Key Sectors of the National Economy
Medical equipment, pharmaceutical products, biotechnology, dietary supplements .Electronic components,
software .Aviation and spare parts, engineering services, the new generation of energy .Tourism, education and
training services, safety equipment, telecommunications equipment, the fashion market, real estate products
High Potential Sectors
The car industry, retail trade, information and communication techniques, biotechnology, medical care, the
environment, the sectors relative to elderly people. The JETRO details the attractiveness of these sectors.
Office Real Estate and Land Ownership
Possible Temporary Solutions
Located in the main Japanese cities (Tokyo, Yokohama, Nagoya, Osaka, Kobe and
Fukuoka), the Invest Japan Business Support Centers (IBSC) managed by JETRO,
offer temporary office space (up to 50 working days) and various services and
support.
The Possibility of Buying Land and Industrial and Commercial Buildings-Yes
Risk of Expropriation-Up to now, bilateral disagreements have given rise to no
expropriation.
Consumer & Services :
 Fabric for handkerchiefs and scarves
 Luxury party dresses
 Handkerchiefs
 Clothing for dogs
 Import of silk scarves for women
 Shoes and fashion accessories
 Leather bags and goods
 Manufacturer/wholesaler of paper napkins and lace paper sought
 British dairy products
 Digital showcase opportunity for British food and drink products
Current trending investment opportunities in japan
Technology
• Innovative drone related products, services and solutions
• Ideas and technologies for increasing clients of banks sought
• Innovative connected vehicle products, services and solutions
• Innovative fine tech products, services and solutions
• Low cost and low concentration ozone sensor
• Wireless technology ,Fastest recovery from any earthquake and sink hole within 7 days.
 Mould detecting technologies.
 Colourful IR inks.
 Re-usable ethylene removal filters.
 Innovative surface printing technologies.
 Low cost surface treatment technology for
metals.
 Equipment and machinery for plants.
 Instruments for engineering plants.
Manufacturing Sector
 Energy technologies sought
 A Japanese based technology trading company is seeking UK energy harvesting technologies.
 Innovative technology to produce hydrogen for renewable energy market
 A local manufacturer/importer of industrial machinery for the renewable energy industry is looking f
technology to extract hydrogen from hydrosulfuric acid.
 Innovative water treatment technology to eliminate nitrogen
 A local manufacturer/importer of industrial machinery for the renewable energy industry is looking f
technology to separate or eliminate nitrogen at effluent treatment facilities.
Energy And Power Enhancing Sector
JAPAN
2020
TOKYO OLYMPICS 2020
The Olympic boost
Winning the Olympic bid will prove a boon for the construction and hospitality industries. Both
sectors have already enjoyed an "Olympic bounce".
Shares in Taisei and Kajima Corporation, two building contractors that are likely to build some of the
stadiums, have soared in recent weeks. Transport companies, such as East Japan Railway and Japan
Airport Terminal, will benefit from thousands of people flocking to Tokyo to watch the games
The long-term benefits will be seen in infrastructure spending in new or enhanced stadiums, facilities,
housing and transportation systems." But he said property could be the big winner. Japan's biggest
global brands to reap the rewards of higher consumer confidence and spending. As we approach the
Games and the world's eyes focus on Japan, the country's global brands
SUCCESS STORIES!!!!!!!!
BOSCH-SELF DRIVING CAR
• Bosch sees potential for 48-volt systems and brings automated driving to Japan
Automated driving tests to begin in Japan this year.
• Ground breaking development in battery technology
Connected vehicles are safer, more efficient, and make driving more relaxed
Bosch offers two-wheeler-specific solutions in all product areas.
Automated driving:
• Bosch to start test drives in Japan :
The increasing demand for road safety and mobility for an aging society is making Japan an
important market for automated driving.
• The Japanese government has announced plans for self-driving cars to be running on Tokyo’s
roads during the 2020 Olympic Games.
• Bosch is developing the technologies to realize automated driving towards 2020. The
company has now started testing on Japanese public roads, making Japan the third
key Bosch location for developing automated driving.
• The company expects to see sales growth of around ten percent in 2015 .
“Thanks to our strong global presence, our sales to Japanese automakers grew by
roughly 13 percent in 2014,” Heyn said. “Japanese automakers are increasingly
focusing on small and efficient vehicles, and Bosch has the technologies they need.”
 Japan is proving a tempting hunting ground for investors this year. It has been one of the best performing
stock markets in 2013 and now it's won the right to stage the Olympic Games in 2020.
 In addition, the Japanese government is determined to end a two-decade period of perennial
disappointment for investors. It has implemented economic reforms to rejuvenate the world's third-
largest economy – and these have been warmly received by investors. The Japanese stock market is up
42pc so far this year.
 So is this stellar run set to continue? Experts say the so-called "easy money" has already been made and
such rapid share price rises are unlikely to continue.
 But there are signs that the stock market can continue climbing for the remainder of 2013. Tokyo being
awarded the 2020 Olympic Games gave it an instant boost. Analysts said hosting the world's biggest
sporting contest would showcases Japan's economic revival, following the 2011 tsunami and economic
stagnation.
 Here, we look at the pros and cons of putting your money into the Japanese stock market and name the
stocks and sectors that should thrive in the run-up to Tokyo 2020.
CONCLUSION
The government will develop an environment where all companies and human
resources enjoy the benefits of global economy and facilitate full-fledged
globalization .
Japan in order to attract outstanding overseas manpower and technologies to Japan
and to create employment and innovation. It will also aim to double inward FDI
stocks to 35 trillion yen in 2020.
INVESTORS!!!! INVEST IN JAPAN AND
Double your investments by 2020
PRESENTED BY-
MALEPATI SHANMUKH NATH-1623622
ASHNA SIKKA-16236
RISHAV KUMAR ROY-1623635
KONGARA RAJ VIHARI-1623620
MANEESH.BR-1623623

Introduction to global business cia 1

  • 2.
    JAPAN Capital: Tokyo Land Area:377,972.28 km2 (62nd) Population: 127,110,047/ Current Constitution Adopted in May 3, 1947 [ Modern Japan ] Often called ‘Land of the Rising Sun’
  • 3.
    The Japanese Language Japanese(Nihongo ,spoken by around 128 million native speakers, is the national language of Japan The literacy rate in Japan is said to be close to 100% of the population, and the country boasts a rich print culture, with one of the world’s highest rates of newspaper circulation. The Japanese writing system makes use of three alphabets: kanji logographic characters adopted from China, and the native phonetic alphabets, hiragana and katakana.
  • 4.
    Currency of Japan TheYen (¥ / 円 / JPY) is the official currency in Japan.The Bank of Japan issues four types of Japanese paper banknotes, and 6 different coins. The banknotes, with value denominations of ¥1,000, ¥2,000, ¥5,000, and ¥10,000.The coins have value denominations of ¥500, ¥100, ¥50, ¥10, ¥5, and ¥1. Both ¥5 and ¥50 coins have a round hole in the middle . Reloadable electronic cash cards are also widely used to pay transportation fees, vending machines, and an increasing number of shops.
  • 5.
    Some facts aboutJapan  World’s third largest economy.  One of the highest purchasing power country in the world.  GDP per capita: 38,633.71 USD .  Gross domestic product: 4.92 trillion USD.  GDP growth rate: 1.6% annual change .  Gross national income: 4.812 trillion PPP dollars .  Internet users: 86.2% of the population.  GNI per capita: 37,790 PPP dollars.  HDI 0.891 [very high]
  • 7.
    FIVE REASONS TOINVEST IN JAPAN 1-Japan’s Re-Emergence Japanese currency is back on track after lost two decades. Through abe-nomics large scale monetary easing ,tax forms and various de-regulation,it is showing growth again.
  • 8.
    2 Sophisticated Market ●A huge and sophisticated market exists in japan. ● Japan’s GDP is nearly 500 trillion Yen. ● Japan boasts large scale economic power
  • 9.
    3. INNOVATION HUB ●Japan has an intellectual accumulation that generates innovation. ● “Research funding as a percentage of GDP” and “number of researchers per 10,000 people” are among the largest in the world.
  • 10.
    4. Business friendlyinfrastructure ● Japan’s business environment is higly evaluated in world economic’s forum “The global competitiveness Report 2014-2015”
  • 11.
    5. COMFORTABLE LIVING ●Japan has longest life expectancy in the world. ● Average life expectancy is ranked 1st in the world.
  • 12.
    Five Promises forAttracting Foreign Businesses to Japan 1.Overcome language barriers at retailers and restaurants 2. Facilitate better Internet connectivity; 3. Accommodate business jets at local airports; 4. Enhance educational environment for expatriate children; and, 5. Strengthen advisory and consultation services to support foreign businesses, which are aimed at developing an environment for foreign-affiliated companies to do business easily and improving the living environment for foreigners.
  • 13.
     Japanese senseof loyalty to trusted partners invite foreign investors to start business in Japan as it helps them in the long run.  Japanese believe in customer satisfaction more than any other country in the world. Each and every employee no matter what his work is does it to provide maximum satisfaction through service.  All the Japanese are service oriented and service is the pillar of Japanese Business.  Even Japanese Salesmen, foreign product distributors speak English unlike other countries in Asia also they give and expect politeness from other party for long establishing business relationships. JAPANESE BUSINESS CULTURE
  • 14.
    JETRO Japan External TradeOrganization , is an independent government agency incorporated as a nonprofit corporation in Osaka in February 1952, and reorganized as the Ministry of International Trade and Industry (MITI) in 1958 to consolidate Japan's efforts in export promotion.JETRO maintaines seventy-three offices in fifty-five countries, as well as thirty-six regional offices in Japan, with a total staff of 1,500. Its main office is located in the Ark Mori Building, Tokyo. Initially, JETRO's activities focused mainly on promoting exports to other countries. As exporters established themselves in world markets and the balance of trade turned from deficit to surplus, however, JETRO's role shifted to encompass more varied activities. These have included the furtherance of mutual understanding with trading partners, import promotion, liaison between small businesses in Japan and their overseas counterparts, and data dissemination. Import promotion services have included publications, promotion of trade fairs, seminars, and trade missions.
  • 15.
    JETRO also providesinformation and support to foreign companies looking for successful entry and expansion in the Japanese market. JETRO provides a wide range of services, such as timely market intelligence, extensive business development support, and relevant business events, designed to encourage new business between foreign companies and Japan. JETRO also provides current information on the laws and regulations surrounding new business operation in Japan to assist companies in expanding their business to Japan.
  • 16.
    INCENTIVES GIVEN BYJAPAN TO ATTRACT FDI- I.SUBSIDARY PROGRAMME FOR GLOBAL INNOVATION CENTER
  • 17.
    TAX INCENTIVES forcompanies that relocate their headquarters from the 23 wards in Tokyo to other regions, or that enhance and expand the function of their headquarters in those regions
  • 18.
  • 19.
    TAX INCENTIVES TOPROMOTE CAPITAL INVESTMENT I.IMMEDIATE DEPRECIATION OF ASSETS OR TAX CREDIT UP TO 5% II.SPECIAL DEPRECIATION OF 50% OF ASSETS OR TAX CREDIT OF 4%
  • 20.
    FDI According to the2015 UNCTAD report on world investment, Japan was the 13th most attractive destination for multinational companies over the 2015-2017 period. In 2014, the influx reached USD 10 billion.
  • 21.
    Small Business InvestmentOpportunities in Japan 1. Pharmaceutical: Japan has the world’s 2nd largest pharmaceutical industry with a total market value of over $60 billion. 2. Information technology 3. Energy: As Japan keeps developing by the day, the rate of energy consumption in the country is increasing. 4. Retail: Retailing is very lucrative, there is a large population to cater to, and so the market is large and the opportunities are unlimited. 5. Manufacturing: Japan has many manufacturing firms because the country is rich in the raw materials used in most industries. 6. Agriculture:Agriculture thrives in any economy because of the ever-huge demand for food and other agricultural products.
  • 22.
    7. Real estate:Highly developed country, real estate is a good investment. 8. Business consulting services: Because more foreigners are becoming aware of the huge business opportunities in Japan, new businesses by foreigners spring up daily. 9. Alternative medicine: Alternative medicine is a lucrative sector in Japan, just as is the case in countries like China and India. 10. Jewelry Japanese women love fashion. And for this reason, there is huge demand in the country for women’s clothes, shoes, and jewelry.
  • 23.
    Research and DevelopmentField In recent years, there has been a move by foreign-affiliated companies to take advantage of Japan’s outstanding technologies and know-how by establishing R&D centers in Japan with an eye to the booming Asian market. Symbolic examples are the establishment of R&D centers in Japan by Apple of the US and Nokia of Finland, which were announced in succession. According to the “2015 Survey of Trends in Business Activities of Foreign Affiliates” conducted by the Ministry of Economy, Trade and Industry (METI), 670 (21%) of 3,332 foreign-affiliated companies in Japan have their R&D centers in Japan. In the manufacturing industry, 310 of 594 companies, or over half (52%), have their R&D centers in Japan (as of March 2015).
  • 24.
    Utilization of NationalStrategic Special Zones “National Strategic Special Zones” were established for progressive reform of bedrock regulations in various fields including medical care, tourism, and starting business. Since the enactment of the act in December 2013, 10 areas have been established as Special Zones. In these zones, the government is promoting regulatory reform and other measures in a comprehensive and focused manner in order to enhance the international competitiveness of the industries and promote the formation of hubs for international economic activities through i ntensive structural reform of economic society. Eg: Tokyo , Niigata, Kansai, Yabu, Okinawa
  • 25.
    Protection of ForeignInvestment Bilateral investment conventions signed by Japan Japan is a signatory to 12 conventions. Bilateral agreements with Australia, the European Union and the Republic of Korea are currently being negotiated. The Trans-Pacific Partnership was signed in February 2016. For a list of conventions signed by Japan, consult the list prepared by UNCTAD. Japan has been involved in no case of disagreement concerning foreign investment and up to now, bilateral disagreements have given rise to no expropriation. UNCTAD offers a database listing disagreements and the countries involved, complementary information about the evolution of settlement of international disputes concerning investment. Organizations Offering Their Assistance in Case of Disagreement ICCWBO , International Court of Arbitration: International Chamber of Commerce WTO , World Trade Organization Member of the Multilateral Investment Guarantee Agency Japan has been a member since its creation.
  • 27.
  • 28.
    THE ENERGY SECTOR Japan is the world's largest liquefied natural gas importer, second-largest coal importer, and third- largestnet importer of crude oil and oil products.  Japan imports virtually all its fossil fuels, whereas very little fuel is needed for nuclear energy generation.  Japan spent about $270 billion, or around 58% more, for fossil fuel imports in the three years following the Fukushima accident.  Japan's current government intends to resume using nuclear energy as a baseload power source with necessary safety measures.  The government believes that the use of nuclear energy is necessary to help reduce current energy supply strains and high energy prices faced by Japan's industries and end users.  Japan is the third-largest petroleum consumer in the world. The country relies almost solely on imports to meet its oil consumption needs because Japan's oil resources are very limited.  Japan, the third-largest global net oil importer, is highly dependent on the Middle East for most of its supply. The country is seeking to diversify its supply sources in Russia, Southeast Asia, and West Africa.  Japan have accounted for about 37% of global LNG purchases since 2012, as the Fukushima disaster spurred greater demand for LNG in the power sector.  Nearly a third of the country's LNG imports are from Southeast Asia, but Japan has a diverse portfolio of supply sources.
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    Electricity  Japan wasthe world's third-largest producer of nuclear power, after the United States and France, before the Fukushima Daiichi nuclear power plant accident in March 2011.  After the Fukushima disaster, the composition of fuel used for power generation shifted to fossil fuels, particularly LNG, which became the primary substitutes for nuclear power.  Japan had 293 gigawatts (GW) of total installed electricity generating capacity in 2012.  Nuclear capacity was 44 GW in 2012, constituting 15% of the capacity, although installed capacity fell to 42 GW by 2014 after the last two of the six Fukushima-Daiichi reactors were decommissioned.  Hydroelectric facilities held 17% of the capacity and have been a steady source of power supply for Japan for several years.  The remaining capacity came from wind, solar, geothermal, and small biomass-fired plants.  Japan's electricity industry is dominated by 10 privately-owned, integrated power companies that act as regional monopolies, accounting for about 80% of the country's total installed generating capacity.  The largest power company is TEPCO, which accounted for 22% of total power generation in the country in 2012.
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    Road Infrastructure inJapan : There are over 1.2 million kilometres of roads in Japan, about 8,000 of which are expressways. As Japan is technologically very advanced, most national roads and expressways have electronic speed limit and notice signs. They keep you up to date on traffic congestion and accidents, two of the daily side effects of driving in Japan. Expressways : Japan has an excellent network of national expressways which crisscross the islands. Since the expressways were largely built on debt, they are now toll roads. • This helps to regain construction costs little by little through contributions from motorists . Most expressways measure toll by the distance a vehicle has travelled. • The toll due is also dependant on the type of vehicle, for example, a truck or a passenger car.
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    The harbours andports  There are 1020 ports in Japan, 22 of which are main ports of special purpose, 106 main ports and 892 local ports.  Most frequently port-managing organizations are city municipalities (395 ports) or prefecture administrations (619 ports).  The development of most significant for economics Japanese ports is financed 2/3 by government means; the remaining part is financed by port-managing organizations.
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    • Railways inJapan play a central role in the intra city transport of commuters, the high-speed intercity transport of travellers and the conveyance of many kinds of cargo. • As such, railways are the most important mode of transportation in Japan today, playing a pivotal role in the nation's industrial and social development. • Development of railways has also contributed to environmental betterment, by reducing dependence on private vehicles and thereby the adverse impact they have on the environment. • The total length of lines operated in Japan is more than 27,200 km, with 20,100 km operated by JR, 6,500 km by other private railways, and 600 km by subways. • To meet the ever increasing demand placed on its railway system, Japan is constantly developing and applying new technologies to improve its intracity and intercity passenger and freight railway networks. These networks are renowned worldwide for their efficiency and safety. • Since commencing operation in 1964, Shinkansen trains have transported more than 5 billion passengers and maintained a perfect safety record.
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    Water quality:  Thedrinking water quality and the quality of waste water discharged into open watercourses typically exceed national standards, water quality in rivers and lakes still does not meet environmental standards. For example, the attainment rate of environmental standards was 87% in 2005, but in lakes and marshes it was only 50%. Water supply:  New water distribution pipes are typically made from ductile iron and service pipes from stainless steel. The share of pipes made of these materials increased from 40% for ductile iron and zero for stainless steel in 1980 to 100% for both in 2006.  The change in pipe materials is credited as a major factor in reducing water losses to one of the world's lowest levels.  Water treatment is usually through rapid sand filtration (76%), while 20% of water utilities only disinfect water without additional treatment.  Utilities increasingly adopt advanced water treatment methods such as activated carbon, ozone disinfection and air stripping.
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    Procedures Relative toForeign Investment • Freedom of Establishment – Guaranteed • Acquisition of Holdings - Possible • Obligation to Declare-The different obligatory declarations in Japan are:- when a company with capital in excess of JPY 2 billion acquires 10%, 25% or 50% of a Japanese company. - when a company with capital in excess of JPY 10 billion acquires business from another company with more than a JPY 1 billion turnover. • Competent Organisation For the Declaration-Ministry of Finance Japan Fair Trade Commission (JFTC) • Requests For Specific Authorisations-The investment of foreign capital in agriculture, forestry, fishing, mines, oil, leather and telecommunications must be first examined by the Japanese Government. Any investment in the banking, insurance, energy, electricity, security and pharmaceutical sectors is subject to license.
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    Investment Opportunities The KeySectors of the National Economy Medical equipment, pharmaceutical products, biotechnology, dietary supplements .Electronic components, software .Aviation and spare parts, engineering services, the new generation of energy .Tourism, education and training services, safety equipment, telecommunications equipment, the fashion market, real estate products High Potential Sectors The car industry, retail trade, information and communication techniques, biotechnology, medical care, the environment, the sectors relative to elderly people. The JETRO details the attractiveness of these sectors.
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    Office Real Estateand Land Ownership Possible Temporary Solutions Located in the main Japanese cities (Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka), the Invest Japan Business Support Centers (IBSC) managed by JETRO, offer temporary office space (up to 50 working days) and various services and support. The Possibility of Buying Land and Industrial and Commercial Buildings-Yes Risk of Expropriation-Up to now, bilateral disagreements have given rise to no expropriation.
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    Consumer & Services:  Fabric for handkerchiefs and scarves  Luxury party dresses  Handkerchiefs  Clothing for dogs  Import of silk scarves for women  Shoes and fashion accessories  Leather bags and goods  Manufacturer/wholesaler of paper napkins and lace paper sought  British dairy products  Digital showcase opportunity for British food and drink products Current trending investment opportunities in japan
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    Technology • Innovative dronerelated products, services and solutions • Ideas and technologies for increasing clients of banks sought • Innovative connected vehicle products, services and solutions • Innovative fine tech products, services and solutions • Low cost and low concentration ozone sensor • Wireless technology ,Fastest recovery from any earthquake and sink hole within 7 days.
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     Mould detectingtechnologies.  Colourful IR inks.  Re-usable ethylene removal filters.  Innovative surface printing technologies.  Low cost surface treatment technology for metals.  Equipment and machinery for plants.  Instruments for engineering plants. Manufacturing Sector
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     Energy technologiessought  A Japanese based technology trading company is seeking UK energy harvesting technologies.  Innovative technology to produce hydrogen for renewable energy market  A local manufacturer/importer of industrial machinery for the renewable energy industry is looking f technology to extract hydrogen from hydrosulfuric acid.  Innovative water treatment technology to eliminate nitrogen  A local manufacturer/importer of industrial machinery for the renewable energy industry is looking f technology to separate or eliminate nitrogen at effluent treatment facilities. Energy And Power Enhancing Sector
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    TOKYO OLYMPICS 2020 TheOlympic boost Winning the Olympic bid will prove a boon for the construction and hospitality industries. Both sectors have already enjoyed an "Olympic bounce". Shares in Taisei and Kajima Corporation, two building contractors that are likely to build some of the stadiums, have soared in recent weeks. Transport companies, such as East Japan Railway and Japan Airport Terminal, will benefit from thousands of people flocking to Tokyo to watch the games The long-term benefits will be seen in infrastructure spending in new or enhanced stadiums, facilities, housing and transportation systems." But he said property could be the big winner. Japan's biggest global brands to reap the rewards of higher consumer confidence and spending. As we approach the Games and the world's eyes focus on Japan, the country's global brands
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    • Bosch seespotential for 48-volt systems and brings automated driving to Japan Automated driving tests to begin in Japan this year. • Ground breaking development in battery technology Connected vehicles are safer, more efficient, and make driving more relaxed Bosch offers two-wheeler-specific solutions in all product areas. Automated driving: • Bosch to start test drives in Japan : The increasing demand for road safety and mobility for an aging society is making Japan an important market for automated driving. • The Japanese government has announced plans for self-driving cars to be running on Tokyo’s roads during the 2020 Olympic Games.
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    • Bosch isdeveloping the technologies to realize automated driving towards 2020. The company has now started testing on Japanese public roads, making Japan the third key Bosch location for developing automated driving. • The company expects to see sales growth of around ten percent in 2015 . “Thanks to our strong global presence, our sales to Japanese automakers grew by roughly 13 percent in 2014,” Heyn said. “Japanese automakers are increasingly focusing on small and efficient vehicles, and Bosch has the technologies they need.”
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     Japan isproving a tempting hunting ground for investors this year. It has been one of the best performing stock markets in 2013 and now it's won the right to stage the Olympic Games in 2020.  In addition, the Japanese government is determined to end a two-decade period of perennial disappointment for investors. It has implemented economic reforms to rejuvenate the world's third- largest economy – and these have been warmly received by investors. The Japanese stock market is up 42pc so far this year.  So is this stellar run set to continue? Experts say the so-called "easy money" has already been made and such rapid share price rises are unlikely to continue.  But there are signs that the stock market can continue climbing for the remainder of 2013. Tokyo being awarded the 2020 Olympic Games gave it an instant boost. Analysts said hosting the world's biggest sporting contest would showcases Japan's economic revival, following the 2011 tsunami and economic stagnation.  Here, we look at the pros and cons of putting your money into the Japanese stock market and name the stocks and sectors that should thrive in the run-up to Tokyo 2020. CONCLUSION
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    The government willdevelop an environment where all companies and human resources enjoy the benefits of global economy and facilitate full-fledged globalization . Japan in order to attract outstanding overseas manpower and technologies to Japan and to create employment and innovation. It will also aim to double inward FDI stocks to 35 trillion yen in 2020. INVESTORS!!!! INVEST IN JAPAN AND Double your investments by 2020
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    PRESENTED BY- MALEPATI SHANMUKHNATH-1623622 ASHNA SIKKA-16236 RISHAV KUMAR ROY-1623635 KONGARA RAJ VIHARI-1623620 MANEESH.BR-1623623