This document provides a comparative analysis of Japan and Australia across various metrics including geography, demographics, economy, politics, culture and foreign relations. It analyzes each country using PEST analysis and Hofstede's cultural dimensions. Strengths and weaknesses are identified for both countries. Recent news highlights growing military cooperation between Japan and Australia while also noting ongoing issues around whaling.

1. INTERNATIONAL RELATIONS
AND STRATEGY
COMPARATIVE ANALYSIS:
JAPAN AND AUSTRALIA
Shivam Mall
SCMS,Pune

2. Two Islands, One Nation

3. Focus
 Important Facts
 PEST analysis
 Hofsted’s dimensions
SWOT analysis
 Current News
 Conclusion

4. THE TEMPLE OF THE GOLDEN PAVILION

5. MELBOURNE CRICKET GROUND

6. IMPORTANT FACTS
Topics Japan Australia
Continent Asia Australia
Location Small island chains Smallest continent
Primary Language Japanese English
Currency Yen Australian Dollar
Capital City Tokyo Canberra
Largest City Tokyo Sydney
GDP $4.7 Trillion $ 998 Billion
Growth Rate 2% 2.5%
Exchange rate Yen per (₹0.53) AUD per (₹52.96)

7. PEST ANALYSIS

8. POLITICAL OVERVIEW

9. POLITICAL FACTORS
Title Japan Australia
Country Name Japan Common wealth of Australia
Government Type Parliamentary
Government with a
constitutional monarchy
Federal parliamentary
democracy with a
constitutional realm
Capital Tokyo Canberra
Administrative
divisions
47 States 6 states and 2 territories
Independence 3rd May 1947 1st January 1901
Chief Executive Akihito Quentin Alice Louis Bryce
Second Chief Exec Shinzo Abe Tony Abbott
Next Elections December 2014 January 2017
Legislature size 722 members 150 members
National Holiday B’day of Emperor:
Akihito (23rd dec)
1st January

10. ECONOMY OVERVIEW

11. ECONOMIC OVERVIEW
Title Japan Australia
Currency Yen (₹0.53) Australian Dollar (₹52.96)
GDP $4.7 Trillion $998 Billion
GDP by sector Agriculture: 1.1%
Industry: 25.6%
Services: 73.2%
Agriculture: 3.2%
Industry:27.4%
Services:68.5%
Inflation Rate 0% 3%
Labor Force 65.68 Million 12.15 Million
Unemployment Rate 4.6% 5.7%
Agricultural Products Rice, vegetables, pork,
fish, dairy products, fruits
Wheat, barley, sugarcane,
cattle, sheep, poultry
Fiscal year 1st April- 30th march 1st July-30th June

12. GDP

13. FOREIGN TRADE AND RELATIONS
Title Japan Australia
Exports $697 Billion $250 Billion
Exports commodities Motor vehicles, semi
conductor, iron and
steel, auto parts,
plastic materials,
power generation
machinery
Coal, iron ore, gold,
wheat, alumina, meat,
machinery and
transport equipment
Export Partners China-18.5%
US-17%
S.Korea-7%
Thailand-5%
Hong Kong-5%
China-29%
Japan-19.3%
S.Korea-8%
India-4.9%

14. FOREIGN TRADE AND RELATIONS
Title Japan Australia
Imports $766 Billion $245.8 Billion
Import Commodities petroleum 15.5%; liquid
natural gas 5.7%; clothing
3.9%; semiconductors
3.5%; coal 3.5%; audio
and visual apparatus
2.7%
machinery and transport
equipment, computers
and office machines,
telecommunication
equipment and parts;
crude oil and petroleum
products
Import partners China 21.3%, US 8.8%,
Australia 6.4%, Saudi
Arabia 6.2%, UAE 5%,
South Korea 4.6%, Qatar
4%
China 18.4%, US 11.7%,
Japan 7.9%, Singapore
6%, Germany 4.6%,
Thailand 4.2%, South
Korea 4.1%
Current Account
Balance
$69 Billion $5 Billion

15. SOCIO-CULTURAL OVERVIEW

16. SOCIO-CULTURAL FACTORS
Title Japan Australia
Population 127 Million 22 Million
Density 337 per sq km 2 per sq km
Median Age 45.8 38.1
Average sex ration 0.9 males per female 1.01 males per females
Labor force 65 million 12 million
Birth rate 8 per 1000 people 12.3 per 1000
Population below
poverty line
16% 19%
Literacy rate 99% 99%
Life expectancy 84 years 81 years

17. CULTURAL DIVERSITY EXPLAINED BY
HOFESTEDE'S DIMENSIONS
1.Individualism versus collectivism. Japan scores high on
collectivism where Australia is among the most
individualistic cultures. For Japanese culture, this
means there is a partiality towards the common good. In
contrast, Australians expect to choose their own
affiliations and pursue their own goals.
2.Large versus small power distance. Power distance
refers to the extent to which a society accepts a
hierarchical order and how power within an
organisation is distributed. Japanese culture accepts a
large power distance where in Australia it is relatively
low.

18. CONTINUED…
3.Strong versus weak uncertainty avoidance. Japanese
culture ranks amongst the highest in this category. The
Japanese maintain rigid codes of belief and tend to
remain longer with their present employer. Conversely,
Australians maintain a more relaxed atmosphere in
both their professional and personal lives.
4. Masculinity versus femininity. Japan is considered by
Hofstede to be the most masculine culture. Masculinity
refers to a preference for 'achievement, heroism,
assertiveness and material success'. On the other hand,
Australia is considered to be more feminine with a
preference for relationships, modesty and quality of
life.

19. TECHNOLOGICAL OVERVIEW

20. SWOT ANALYSIS

21. STRENGTHS OF JAPAN
• Japanese society (Zen): selflessness, continuous
improvement - the Japanese always strive for
perfection and they try to show improvement in
the areas where they are lacking.
• Technology - Japan is the technology capital of
the world. They have all the new innovations
before anyone else does. Now they just need to
figure out how to properly market these ideas
and distribute them globally.
• Economy - right now the economy in Japan is
very strong and the Japanese need to use this to
their advantage.

22. WEAKNESS OF JAPAN
• Non-verbal communication practices - in the Japanese culture
non-verbal communication is practiced on a regular basis.
When companies start trying to negotiate and practice business
in other countries and other cultures, communication tends to
be misinterpreted.
• Quickness - the Japanese culture tends to be relaxed and based
on relationship building. Other cultures are very quick with
everything including communication. Many companies fear
doing business with Japanese companies because sometimes it
creates more work than is necessary with other countries and
cultures.
• Education - many Japanese go to other countries for extended
education. Many of these individuals tend to stay in the country
in which they study for different opportunities that Japan
cannot offer them.

23. OPPORTUNITIES OF JAPAN
• Environmental Issues (recycling, energy saving, etc.)
• World's Second Largest National Market
• Increase of Women in Business - the Japanese are
starting to see an increase in women in management
positions. This could create an opportunity for new
ideas and more creative ways for the businesses to be
organized.
• Foreign Influences becoming more welcome - with an
increase in education outside of the country, some
individuals return to Japan with new insights to their
own culture.

24. THREATS OF JAPAN
• Globalization - since Japan is an island they
tend to be far away from everyone else. This
has created problems with many corporations
trying to go global.
• Small proportion of foreign investment - the
Japanese feel they have great products within
the country and do not always support foreign
investment opportunities. This practice has
deterred some companies from trying to enter
the Japanese market or from trying to create
joint ventures with Japanese companies.

25. STRENGTHS OF AUSTRALIA
•Strong Economy with per capita GDP on par with the four
dominant West European economies.
•Strong emphasis on reforms, low inflation, a housing market
bloom, growing ties with china have led to its 16 years of
expansion.
•The budget has been in surplus since 2002 due to strong
revenue growth. •Major exporter of agricultural products,
minerals, metals, and fossil fuels. •Excellent domestic and
international telephone services.
•“The strength of Australia’s economy has been highlighted in
recent years by its ability to withstand a number of internal
and external events, including a major drought, a housing
boom and the Asian financial and economic crises.”(About
Australia)

26. WEAKNESS OF AUSTRALIA
•“Socially permissible systems for information
exchange, vertically and horizontally
(professional cross-sectoral committees are a
step in the right direction on the government
level).” (SWOT Analysis)
•Enforcement of environmental and economic laws
and regulations.

27. OPPORTUNITIES OF AUSTRALIA
•Australia has a business-friendly regulatory environment.
“According to the World Bank, Australia is the fastest place in
the world in which to start a business, with regulatory
procedures taking just two days”. (About Australia)
•Has the fewest restrictions on product markets of all of its 30
member countries, the lowest level of public ownership of
business and the least restrictive impact of business regulation
on economic behaviour
•“Australia recently partially deregulated the banking sector,
removing many interest rate limits and allowing the entry of 16
new foreign banks, five of which were U.S. banks. Chase
Manhattan and Citibank are moving rapidly into the retail
banking sector and beginning to provide competition for what
was a rather entrenched banking system.

28. THREATS OF AUSTRALIA
• Drought, robust import demand, and a strong
currency have pushed the trade deficit up in
recent years, while infrastructure bottlenecks
and a tight labour market are constraining
growth in export volumes and stoking inflation.
• Australia's budget has been in surplus since
2002 due to strong revenue growth.

29. RECENT NEWS
• In 2006, Australia and Japan celebrated the 30th
anniversary of the signing of the Basic Treaty
of Friendship and Cooperation between
Australia and Japan 1976 (Japan).
• Military technology deal.
• Whaling issues.
• Kyoto protocol.

30. QUOTING EX PRIME MINISTER HOWARD
'Australia has no greater friend in Asia than Japan'.

31. THANK YOU