International Business - Essay Example

Japan is experiencing an intensive change as a result of its aging population and decrease in labour force. The country has faced challenge from deflation from previous years, but due to the help of government and political factors, the country is gradually gaining economic advantages at present. In this paper, major business sectors of Japan will be discussed. Socio-economic and political issues have a serious impact on the business growth, GDP growth along with economic development of the country.

The growth of business has an impact on population of the country, which has been discussed in this paper as well. 2.0 Principal Business Sector of Japan Japan is one of the highly developed nations in the world. Since resources are limited in the country, companies import raw materials and process them to finished products. Fishing industry in Japan is a growing business sector because a huge amount of marine resources are available in the country (Kids Web Japan, n.d.). Manufacturing industries is a key sector in business of Japan.

The development of manufacturing industries has been in the first rank. The country is one of the world’s leading shipbuilders. Majority of ships are exported along with large oil tanker in the world (Country Studies, 2011). Automobile business sector is one of the core industrial sectors of Japan. The country is also considered as one of the top automobile producers. Advanced technology of Japan in the design of buses, motorcycles, bicycles and high-speed trains are the major factors in the business growth of transport industry.

Chemical in addition to petrochemical industry are primary business sectors. Semi-conductor business of Japan developed in size and thereby stimulating profits. Automotive products comprise of 16.9% of the entire value of manufacturing shipment of Japan and manufacturing industry comprises of 36.3% of combined shipments (Japan Automobile Manufacturers Association, 2010). Figure 1: Major Manufacturing Sector in Value Terms Source: (Japan Automobile Manufacturers Association, 2010). Japanese computer manufacturers (JCMs) play a leading role in the technology as well as business sector of Japan.

As a core competence, JCMs have absorbed and mastered expert system technology (Feigenbaum, 1993). 3.0 Socio-Economic Issue and Political Issue Relating to Future Business Growth, GDP Growth and Economic Development Socio-economic issues of Japan have tremendous impact on the economic development of the country. The economic development of the country is facing challenges due to decrease in birth rate as well as aging population. At domestic and global level, socio-economic development can only be achieved by dealing with global warming along with environmental issues.

A variety of economic activities are conducted on the assumption that environmental issues need to be properly addressed. Japan produces about 90 percent of global warming gases that originate from sources of energy. Japan has incorporated an approach to the issues of energy as well as global warming and they are responding to waste management issues by means of “3 Rs” (reduce, reuse and recycle). On the supply side, a point of competitiveness suitable for an advanced industrial economy is essential to achieve economic development in Japan.

The government is assisting the efforts of companies to