INTRODUCTION TO GLOBAL BUSINESS- CIA-1

SUBMITTED BY- SUBIMITTED TO-

RISHAV KUMAR ROY-1623635 NIRANJAN.LR

MANEESH.BR-1623623

MALEPATI SHANMUKH NATH-1623622

KONGARA RAJ VIHARI-1623620

ASHNA SIKKA-1623656

(II BBA FI_B “B”)

Name Reg no Contribution Rubrics

Content references

Presentation

1) MANEESH.BR 1623623 Jetro , five promises for attracting foreign investments, five reasons to invest in japan ,energy, Conclusions.

2) MALEPATI SHANMUKUKH NATH

1623622 Top 10 small business investments in japan, japan’s demographic condition,Infrastructure,manufacturingIndustry.

3) ASHNA SIKKA 1623656 World class transportation, procedure of foreign investments

4) KONGARA RAJ VIHARI

1623620 Japanese business culture,bosch self driving car,current investments,

5) RISHAV KUMAR ROY

1623625 Foreign investments it’s protection,govt incentives and subsidies .

ContentsABOUT JAPAN-.............................................................................................................................................2

FIVE RESONS TO INVEST IN JAPAN:-............................................................................................................3

Five Promises for Attracting Foreign Investments to Japan.........................................................................8

Top 10 Small Business Investment Opportunities in Japan.......................................................................11

JAPAN: FOREIGN INVESTMENT..................................................................................................................13

Protection of Foreign Investment..............................................................................................................15

Procedures Relative to Foreign Investment...............................................................................................16

Investment Opportunities.........................................................................................................................18

Government incentives and subsidies for FDI:..........................................................................................19

Japanese Business Culture.........................................................................................................................19

JAPAN’S SUPPORT FOR MANUFACTURING SECTOR..................................................................................20

EXAMPLE:- BOSCH - SELF DRIVING CAR....................................................................................................20

CURRENT TRENDING INVESTMENT OPPORTUNITIES IN JAPAN.................................................................22

CONCLUSION.............................................................................................................................................23

Bibliography...............................................................................................................................................24

1

ABOUT JAPAN-

Japan is an island country in East Asia located in the Pacific ocean.

Japan is also popularly known as the “Land Of Rising Sun”.

Capital of the country and the largest city -Tokyo

Recognised regional languages:-Aynu Itak, Ryukyuan, Amami, Kikai, Kunigami,

Miyako, Okinawan, Okinoerabu ,Tokunoshima, Yaeyama, Yonaguni, Yoron.

National Language-Japanese

Ethnic groups- 98.5% Japanes,0.5% Korean,0.4% Chinese,0.2% Filipino,0.2%

Brazilian,0.1% Vietnamese,0.1% other

Government- Unitary Parlimentary Constitutional Monarchy

Emperor-Akihito

Prime minister-Sinzo Abe

Deputy Prime Misnister-Taro Aso

Area- In total- 377,972.28 Square km. And 0.8% of Japan is filled with water

GDP(Project for 2016)- $4.412 trillion

PER CAPITA - $34,871

HDI-0.891(very high)

Currency-YEN

Calling code- +81

2

FIVE RESONS TO INVEST IN JAPAN:-

Reason 1-Japan’s Re-Emergence

Japanese currency is back on track after lost two decades

Through abonomics large scale monetary easing ,tax forms and various de-regulation,it is

showing growth again.

THE JAPANESE ECONOMY IS EMANATING NEW APPEAL.NOW IT’S

PERFECT TIME TO INVEST IN JAPAN.

3

REASON 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

4

REASON 3- INNOVATION HUB

Japan has an intellectual accumulation that generates innovation.

“Reasearch funding as a percentage of GDP”and “number of researchers per

10,000 people” are among the largest in the world.

5

REASON 4-Business friendly infrastructure

Japan’s business environment is higly evaluated in world economic’s forum

“The global competitiveness Report 2014-2015”

6

REASON 5- COMFORTABLE LIVING

Japan has longest life expectancy in the world.

Average life expectancy is ranked 1st in the world.

7

Five Promises for Attracting Foreign Investments to Japan

Promise 1

8

Measures will be taken to enable people from abroad to select and purchase products in foreign

languages at department stores, supermarkets, and convenience stores, etc.; to be treated without

anxiety over language at a hospital when they become ill, and to have signs in foreign languages

available when they travel by car, train, or bus.

Promise 2

Foreign visitors to Japan will be able to use free public wireless LAN simply and easily at

various locations around cities without a contract with a Japanese telecommunications carrier.

Promise 3

To make locating to Japan as a business base or R&D base easier for overseas companies, the

government will create an environment in which all regional airports receive business jets with a

short advance notice.

Promise 4

The government will enrich educational environment for children from overseas, and ensures

that people receiving an education in Japan are able to communicate smoothly in English.

Promise 5

The government will set up a system to make it easy for the foreign businesses which have

invested much amount in Japan to consult the government. The Japanese Government and all

local governments will work together as one to create a network for attracting investment to

Japan.

9

JETRO

Japan External Trade Organization ( 　ジェトロ JETRO) 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.

10

Top 10 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. This proves that pharmaceutical products such as drugs and other forms of medication

are in huge demand in Japan. So, investors can make it big in this sector. If you have in-depth

knowledge of the pharmaceutical industry, then Japan is a good place for you to go start your

own business.

2. Information technology

Again, Japan is the world’s second largest IT market in the world. The country’s IT industry

caters to a huge local and international market. So, there are huge opportunities for experts in

anything related to information technology. If you have a solid background in information

technology and have a knack for developing innovative solutions, then Japan is waiting to

reward your expertise. Better yet, you can start a business that sells various IT solutions.

3. Energy

As Japan keeps developing by the day, the rate of energy consumption in the country is

increasing. And more opportunities keep emerging for investors to make money from the energy

sector.Although the industry is somewhat competitive, smart investors with strong unique selling

points will always have their way through the market.

4. Retail

Retailing is very lucrative in Japan, just like in many other countries. There is a large population

to cater to, and so the market is large and the opportunities are unlimited. To start a retail

business in Japan, you buy products from the manufacturers using your own funds and sell them,

but this approach may be capital intensive. A smarter approach is to collaborate with

manufacturers and get their products. You will only pay them back after you have sold the

products. Amazon adopts the latter approach.

11

5. Manufacturing

Japan has many manufacturing firms because the country is rich in the raw materials used in

most industries. So, you can easily start a manufacturing business in Japan because the raw

materials are readily available. You can start a small-scale manufacturing business; for example,

one that produces items like nails, or a plastic making factory.

6. Agriculture

Agriculture thrives in any economy because of the ever-huge demand for food and other

agricultural products. In Japan, there is high demand for fruits and vegetables as well aslivestock

products such as eggs and cheese. So, if you have a knack for agriculture, Japan is a very good

place to start a business. And the good thing about agriculture is, you can start with little capital

and without any formal qualifications or certifications.

7. Real estate

In any fast-growing economy, the real estate industry booms like wild. This runs true for Japan

as well, leaving many untapped opportunities in the country for real estate investors. So, if you

are looking to start a business in Japan or some other fast growing country, real estate is a good

option.

8. Business consulting services

Because more foreigners are becoming aware of the huge business opportunities in Japan, new

businesses by foreigners spring up daily. However, these businesses are usually faced with the

challenge of adapting to the business climate in Japan and connecting well with customers. As a

business consultant, you can help these businesses achieve their goals quickly by offering them

expert advice on how to attract customers, increase sales, and thrive amid competition.

9. Alternative medicine

Alternative medicine is a lucrative sector in Japan, just as is the case in countries like China and

India. There is huge demand for natural health practitioners and herbal medicine products. So, if

12

you have good knowledge of ayurveda, yoga, homeopathic medicine, or some other practice in

alternative medicine, starting a business in Japan would most probably turn out profitable.

10. Jewelry

Japanese women love fashion. And for this reason, there is huge demand in the country for

women’s clothes, shoes, and jewelry. If you are looking to start a business in Japan, sell jewelry

and other clothing accessories, especially those meant for women.

JAPAN: FOREIGN INVESTMENT

FDI in Figures

According to the 2015 UNCTAD report on world investment, Japan was the 13th most attractive

destination for multinational companies over the 2015-2017 period. While its appeal, compared

to other destinations, is very strong, its performance has been weak at times. After a slowdown

following the 2009 global financial crisis, Japan experienced two consecutive years of

divestment before FDI flows returned to positive values. In 2014, the influx reached USD 10

billion. While the natural disaster that hit Japan on 11 March 2011 and the subsequent

catastrophe at the Fukushima Daiichi Nuclear Plant have contributed to environmental and health

concerns, it is unlikely to substantially slow future foreign investment. Japan has remained a key

market for investors in the year since the tragedy and the country’s strong economy should help

finance the reconstruction of the affected areas without too much difficulty.

Foreign Direct

Investment

2013 2014 2015

FDI Inward Flow

(million USD)

2,304 2,090 -2,250

FDI Stock (million

USD)

170,710 171,663 170,698

Number of

Greenfield

211 227 185

13

Investments***

FDI Inwards (in %

of GFCF****)

0.2 0.2 -0.3

FDI Stock (in % of

GDP)

3.5 3.7 4.1

Source: UNCTAD, 2015

FDI Inflows By Countries and Industry

Main Investing Countries 2014, in %

USA 30.5

Netherlands 13.6

France 13.1

Singapore 7.9

United Kingdom 7.4

Cayman Islands 5.1

Switzerland 4.9

Main Invested Sectors 2014, in %

Finance & Insurance 78.2

Information, telecommunication 13.7

Real estate 5.1

Source: Japanese Trade and Investment Statistics, JETRO - 2016.

14

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.

International Controversies Registered 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 AgencyJapan has

been a member since its creation.

MIGA can help investors and lenders deal with these risks by insuringeligible projects against

losses relating to:

• Currency inconvertibility and transfer restriction

• Expropriation

• War, terrorism, and civil disturbance

• Breach of contract

• Non-honoring of financial obligations

15

Country Comparison For the Protection of InvestorsJapan OECD United States Germany

Index of Transaction Transparency*

7.0 6.0 7.0 5.0

Index of Manager’s Responsibility**

6.0 5.0 9.0 5.0

Index of Shareholders’ Power***

8.0 7.0 9.0 5.0

Index of Investor Protection****

7.0 6.1 8.3 5.0

Source: Doing Business - 2016.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

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.

16

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.

Office Real Estate and Land Ownership

Possible Temporary Solutions-Located in the main Japanese cities (Tokyo, Yokohama,

Nagoya, Osaka, Kobe and Fukuoka), theInvest 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.

17

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.

Privatization Programmes

The energy sector (privatization program being studied).

18

Government incentives and subsidies for FDI:

Japanese Business Culture

1. Japanese sense of loyalty to trusted partners invite foreign investors to start business in Japan

as it helps them in the long run.

2. 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.

3. All the Japanese are service oriented and service is the pillar of Japanese Business.

4. 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.

19

JAPAN’S SUPPORT FOR MANUFACTURING SECTOR

EXAMPLE:- 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

48-volt boost recuperation system suitable for compact car segment

Groundbreaking 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. Since the beginning of 2013, Bosch has been testing vehicles fitted with automated driving technologies on public roads in Germany and the United States. “Due to different road and traffic conditions in Japan, we need to adjust and customize our system appropriately,” Heyn said. Bosch’s accident research predicts that increasing automation can lower accident rates significantly.

Mobility Solutions stays on growth path :

Globally, the Bosch Group’s mobility solutions’ business is growing considerably faster than the automotive market. 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.”

Electrification for increased efficiency: for cars, scooters and bikes :

In Japan, the compact car segment is very popular, and with cost-effective solutions such as the 48-volt boost recuperation system, these smaller vehicles could be more fuel efficient and attractive. Compared to conventional 400 and above volt hybrids.

20

The 48-volt system uses less expensive yet fuel efficient components, and enables additional comfort features as well as dynamic acceleration thanks to a boost function. The entry-level 48-volt hybrid is expected to be a new attractive option for drivers in Europe, North America, and Asia and Bosch expects some 4 million new vehicles worldwide to be equipped with this system in 2020.

Breakthrough in battery technology: solid-state cells for electric cars :

 The solid-state technology, which complements the work of Bosch’s Lithium Energy and Power GmbH & Co. KG joint venture with its Japanese partners GS Yuasa International Ltd. and Mitsubishi Corporation, the company believes even greater gains in energy density can be achieved. Bosch is using its knowledge and considerable financial resources to achieve a breakthrough for electromobility.

Connectivity is the key to an automated and electrified mobility :

The key to both automated and electrified driving is connectivity. Connected vehicles are safer, more efficient, and make driving more relaxed. Connectivity means, for instance, that drivers are warned about congestion and adverse weather conditions. Additionally, they are informed where to find available parking spaces and charging spots. Cars are also turning into digital media hubs as Bosch facilitates continuous access to online music services, social networks, and a wide range of smartphone apps. Connectivity technology also has applications in the aftermarket sector. For example, in the workshop of the future, augmented reality applications will streamline troubleshooting and repair, and thus contribute to reducing costs. Bosch is already in discussion with several customers in Japan about developing solutions based on this augmented reality technology.

21

CURRENT TRENDING INVESTMENT OPPORTUNITIES IN JAPAN

Consumer & Services | Technology | Life Sciences

Manufacturing | Energy | Defence & Security | Olympics 2020

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

Technology

Innovative drone related products, servies and solutions Ideas and technologies for increasing clients of banks sought Innovative connected vehicle products, services and solutions Innovative fintech products, services and solutions Low cost and low concentration ozone sensor Wireless technology

Manufacturing 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

22

Energy 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 for 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 for technology to separate or eliminate nitrogen at effluent treatment facilities.Defence & Security

Technologies for defence market sought

A Japanese based technology trading company is seeking to represent UK companies with innovative electronic technologies.

CONCLUSION

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.

23

Bibliography(n.d.). Retrieved from http://www.autonews.com/article/20161106/OEM06/311079960/japan-inc.-

steps-up-autonomous-drive-push.

(n.d.). Retrieved from http://www.autonews.com/article/20161106/OEM06/311079960/japan-inc.-steps-up-autonomous-drive-push.

(n.d.). Retrieved from http://www.autonews.com/article/20161106/OEM06/311079960/japan-inc.-steps-up-autonomous-drive-push.

(n.d.). Retrieved from https://www.ft.com/content/14d80bec-a297-11e4-9630-00144feab7de.

(n.d.). Retrieved from http://www.mofa.go.jp/policy/economy/japan/invest/.

(n.d.). Retrieved from http://www.mofa.go.jp/policy/economy/japan/invest/.

(n.d.). Retrieved from http://www.businessinsider.com/bosch-concept-car-driverless-car-plans-2016-1?IR=T.

(n.d.). Retrieved from http://auto.economictimes.indiatimes.com/news/auto-technology/now-bosch-to-test-autonomous-cars-on-japan-roads/50684905.

(n.d.). Retrieved from http://www.strategyand.pwc.com/reports/connected-car-2016-study.

(n.d.). Retrieved from https://www.ft.com/content/14d80bec-a297-11e4-9630-00144feab7de.

(n.d.). Retrieved from http://www.forbes.com/sites/sarazervos/2016/04/19/global-investment-guide-how-to-invest-in-japan/#921609f256b3.

(n.d.). Retrieved from http://www.forbes.com/sites/sarazervos/2016/04/19/global-investment-guide-how-to-invest-in-japan/#921609f256b3.

http://auto.economictimes.indiatimes.com/news/auto-technology/now-bosch-to-test-autonomous-cars-on-japan-roads/50684905. (n.d.).

http://www.autonews.com/article/20161106/OEM06/311079960/japan-inc.-steps-up-autonomous-drive-push. (n.d.).

http://www.bosch.co.jp/corporate/en/jp/our_company_6/our-company-lp.html. (n.d.).

http://www.businessinsider.com/bosch-concept-car-driverless-car-plans-2016-1?IR=T. (n.d.).

http://www.nationmultimedia.com/news/breakingnews/aec/30257354#. (n.d.).

http://www.strategyand.pwc.com/reports/connected-car-2016-study. (n.d.).

24

ARTICLES REFFERED-

Asean watch Japanese investments Investment banking round table

25